Sagicor Group net profit attributable to Stockholders jumped 49 percent to $3.1 billion for the September quarter and 27 percent to $7.39 billion for the nine-month to September, over the similar period in 2015.
Improvement in realized gains from securities trading played a big role in the increased profit with investment income rising 43 percent or $1.6 Billion in the quarter to $5.5 billion and a rise of 20 percent or $2.6 billion to $15.56 billion for the nine months to September.
Earnings per stock ended at 79 cents for the quarter and $1.89 for the nine months compared to $1.49 in 2015 and could end around the $3 region by the end of the financial year. Return on average Stockholders’ Equity was 19 percent compared to 17 percent.
“Our core Insurance and Banking businesses produced good results. The overall performance was principally driven by good business growth across all lines, greater than expected capital gains on sale of securities and favourable benefits experience“, management stated in their report to shareholders.
Rose Hall hotel owned by Sagicor Real Estate fund
Administrative expenses of $10.8 billion, were 13 percent more than in 2015, well below the rate of growth in revenues. “The cost increase was driven by higher staff costs, expenses relating to our expanded credit cards program and other non-recurring items,” management said in their report to shareholders. For the September quarter, administrative expenses rose 11 percent to $3.7 billion
Sagicor Group comprises a number of companies offering financial products and services, including life and health insurance; annuities; pensions administration; investment services; commercial banking; investments banking; captives management; property management and real estate sales and rentals.
The company shares are listed on the Jamaica Stock Exchange and last traded at $23.18 and is undervalued.
