However, revenue inched up 8% to US$2.54 billion in its 2022 financial year
Sagicor parent, Sagicor Financial Company (SFC) is reporting a decline in net income to shareholders of US$115.6 million for the financial year ended December 31, 2022.
This is 13 per cent less than the US$133.2 million the Barbados-headquartered, Toronto Stock Exchange-listed financial services company reported in 2021. Sagicor Financial, which has a Jamaican subsidiary reported revenue of US$2.54 billion in its 2022 financial year, which is an eight per cent increase over the US$2.35 billion the company generated in 2021.
Sagicor Financial recorded earnings per share of US$0.809 per share. It will pay a dividend of US$0.05625 per common share on April 27, 2023 to shareholders of record at the close of business on April 4, 2023. The company’s annualized dividend is US$0.225.
Strong performances by operating segments
In spite of the decline in shareholders’ income, Outgoing Sagicor Financial President and CEO, Dodridge Miller declares that 2022 was another strong year for Sagicor as “profitability during the year was supported by strong performances by our operating segments. The macroeconomic backdrop and asset volatility in 2022 allowed us grow top line premiums and invest in higher yields, particularly in the US”.
The group continued to execute on its growth plan for Sagicor Life USA, growing that segment to US$1.3 billion of revenue and US$140 million of net income to shareholders. In January, Sagicor announced the retirement of Miller and the appointment of Andre Mousseau as the new CEO, effective April 1.
Miller in final quarterly report as President and CEOa said he has worked very closely with Mousseau over the last four years and is excited as Mousseau leads Sagicor through the next phase of its development. In his comments on Sagicor’s 2022 performance, Mousseau described it as a “productive year, particularly with strong production in the US, announcing the transformational acquisition of ivari, and working towards IFRS 17 implementation”.
On August 25 last year, Sagicor announced that it entered into a definitive agreement to acquire ivari, a leading middle-market individual life insurer in Canada with over 80 years of history in the region. In announcing the acquisition, Sagicor said it would be financed in part with US$320 million of debt financing, which has a floating interest rate, but which is assumed to be constant at current rates.
Closing of the ivari transaction
According to Mousseau, “we continue to track well for a mid-2023 closing of the ivari transaction as we work through regulatory and other customary closing conditions, and its business fundamentals have continued to perform well. Sagicor has grown to become a multi-national corporation thanks to Dodridge’s vision and leadership and Sagicor will continue to benefit from the foundation that he laid and his continued contributions as a director of Sagicor in the years to come”.
On the issue of IFRS 17, a new accounting standard that came into effect on January 1, 2023, Sagicor said it is not expected to have a material impact on its overall business strategies adding, “the changes in measurement of insurance contract liabilities and timing of recognition of earnings upon transition will change the presentation of the financials. Sagicor is in process of finalising the calculations of the impacts”.