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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Sagicor Financial Corporation Limited | LSE:SFI | London | Ordinary Share | BMG7777B1046 | COM SHS USD0.01 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 117.50 | 105.00 | 130.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSFI
RNS Number : 8577I
Sagicor Financial Corporation Ltd
13 August 2019
Sagicor Financial Corporation Limited
Financial results for the six months ended June 30, 2019
Chairman's Statement
The Sagicor Group maintained a solid performance for the first six months to June 30, 2019. Group net income closed the period at US $58.4 million against a prior year result of US $39.4 million. Net income attributable to shareholders from continuing operations was US $26.2 million compared to the prior year result of US $21.5 million. Net income to shareholders from continuing operations in 2018 included the impact of a provision on the Government of Barbados Debt and was partially offset by certain one-time positive earnings releases.
Total revenue for the Group amounted to US $992.8 million, against a prior year amount of US $633.3 million, an increase of US $359.5 million or 57%. Revenue growth was driven primarily by the USA business segment which generated premium growth, amplified by our strategic decision to cease reinsuring its premiums to third parties. Revenues continue to grow year over year in the Sagicor Jamaica and Sagicor Life business segments as well.
Benefits including change in actuarial liabilities for future benefits were US $639.7 million, compared to US $298.4 million for the previous year and was consistent with the growth in premium income. Expenses including credit impairment losses were US $268.3 million, compared to US $286.9 million for the same period in the prior year, a decrease of 6%. Expenses in the prior year included credit impairment losses of US $57.8 million, largely related to the impairment of the Government of Barbados debt. Current year expenses included the impact of higher commissions related to sales growth in the USA segment.
Group comprehensive income was US $102.0 million, compared to a loss of US $17.0 million for the prior year. Shareholder comprehensive income from continuing operations was US $57.5 million, compared to a loss of US $13.0 million for the prior year. The Group continues to benefit from significant net gains on investments measured at Fair Value through Other Comprehensive Income. Losses incurred on the retranslation of foreign currency operations reduced this year when compared to the previous year.
In the statement of financial position as at June 30, 2019, assets amounted to US $7.9 billion, and liabilities amounted to US $6.6 billion. Group equity was US $1,224.7 million, compared to US $1,135.5 million at December 31, 2018. Shareholders' equity was US $658.6 million, compared to US $600.9 million at December 31, 2018. The Group's debt was US $473.9 million with a debt to capital ratio of 27.9%, compared to 30.2% at December 31, 2018.
On June 4, our shareholders overwhelmingly approved the previously announced transaction with Alignvest Acquisition II Corporation ("AQY"), with 99.5% of shares voting in favour of the transaction. Our shareholders showed further support by electing to receive an aggregate of approximately US $20 million in cash consideration out of the maximum available US $205 million we offered to them. As a result, the vast majority of Sagicor's shareholders will continue to retain their investment in Sagicor post the transaction.
Following completion of the Transaction, which is expected to close in the fourth quarter of 2019 subject to customary regulatory approvals, it is expected that Sagicor will retain over US $420 million of net cash from the transaction, leaving our company exceptionally well capitalized for future growth.
On behalf of the Board of Sagicor, I wish to thank our Shareholders and Customers for their continued support.
Stephen McNamara
Chairman
August 9, 2019
FINANCIAL HIGHLIGHTS Six months ended JUNE 30 (in US Currency except percentages) 2019 2018 ------------------------------------------- -------------- ----------- Total revenue $992.8m $633.3m Overall Group net income $58.4m $39.4m Overall shareholders' net income $26.7m $24.9m Net income allocated to non-controlling interests $31.0m $22.8m ------------------------------------------- -------------- ----------- Total equity $1,224.7m $889.0m ------------------------------------------- -------------- ----------- Book Value per share $2.15 $1.95 ------------------------------------------- -------------- ----------- Ratio of Debt to Capital 27.9% 31.7% ------------------------------------------- -------------- ----------- Earnings per common share from continuing operations 8.5c 7.0c Annualised return to common shareholders' equity 8.5% 7.2% ------------------------------------------- -------------- ----------- CONSOLIDATED STATEMENT OF FINANCIAL POSITION Amounts expressed in June 30 June 30 December US $000 31 2019 2018 2018 (unaudited) (unaudited) (audited) --------------------------- ------------- ------------- ----------- ASSETS Financial investments 5,870,127 5,037,795 5,347,663 Other investments and assets 1,991,584 1,891,654 1,960,522 Assets of discontinued operation - 13,467 17,239 Total assets 7,861,711 6,942,916 7,325,424 ------------- LIABILITIES Policy liabilities 4,106,477 3,566,394 3,662,438 Other liabilities 2,530,557 2,487,515 2,527,525 Total liabilities 6,637,034 6,053,909 6,189,963 ------------- ------------- EQUITY Shareholders' equity 658,605 596,748 600,869 Participating accounts 3,605 (11,230) 4,078 Non-controlling interests 562,467 303,489 530,514 Total equity 1,224,677 889,007 1,135,461 ------------- Total liabilities and equity 7,861,711 6,942,916 7,325,424 ---------------------------- ------------- ------------- These financial statements have been approved for issue by the Board of Directors on August 9, 2019. CONSOLIDATED STATEMENT OF INCOME Amounts expressed in US ---- Six months to ---- Three months to $000 ---- ---- ----- June 30 ----- ----- June 30 ----- 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------- ------------- ------------- ------------- REVENUE Net premium revenue 677,770 410,030 312,711 222,728 Net investment and other income 315,053 223,249 156,593 119,271 Total revenue 992,823 633,279 469,304 341,999 ------------- BENEFITS AND EXPENSES Benefits 639,700 298,416 291,865 166,324 Expenses 268,320 286,918 137,356 169,301 Total benefits and expenses 908,020 585,334 429,221 335,625 ------------- OTHER (Loss) / gain arising on business combinations, acquisitions and divestitures (347) 5,280 (347) - INCOME BEFORE TAXES 84,456 53,225 39,736 6,374 Income taxes (26,574) (17,195) (14,204) (8,814) NET INCOME / (LOSS) FROM CONTINUING OPERATIONS 57,882 36,030 25,532 (2,440) Net income from discontinued operation 517 3,357 - 2,965 NET INCOME FOR THE PERIOD 58,399 39,387 25,532 525 ------------- NET INCOME / (LOSS) ATTRIBUTABLE TO: Common Shareholders From continuing operations 26,194 21,543 11,095 2,046 From discontinued operation 517 3,357 - 2,965 26,711 24,900 11,095 5,011 Participating policyholders 705 (8,310) 457 (16,497) Non-controlling interests 30,983 22,797 13,980 12,011 58,399 39,387 25,532 525 ------------- Basic earnings per common share:
From continuing operations 8.5 cents 7.0 cents 3.6 cents 0.7 cents From discontinued operation 0.2 cents 1.1 cents 0.0 cents 1.0 cents 8.7 cents 8.1 cents 3.6 cents 1.7 cents ------------- Fully diluted earnings per common share: From continuing operations 8.4 cents 6.9 cents 3.5 cents 0.7 cents From discontinued operation 0.2 cents 1.1 cents 0.0 cents 0.9 cents 8.6 cents 8.0 cents 3.5 cents 1.6 cents ------------------------------------- ------------- CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amounts expressed ---- Six months to ---- Three months in US $000 ---- to ---- ----- June 30 ----- ----- June 30 ----- 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) ----------------------------------------- ------------- ------------- ------------- NET INCOME FOR THE PERIOD 58,399 39,387 25,532 525 ------------- ------------- ------------- Items net of tax that may be reclassified subsequently to income: Financial assets measured at fair value through other comprehensive income (FVOCI): Gains / (Losses) on revaluation 76,149 (65,113) 10,214 (36,722) Losses / (Gains) transferred to income 42,197 (1,749) 41,768 1,888 Net change in actuarial liabilities (64,106) 29,874 (29,956) 16,711 Retranslation of foreign currency operations (7,653) (17,782) (12,113) (14,741) Other items - - - 1 46,587 (54,770) 9,913 (32,863) Items net of tax that will not be reclassified subsequently to income: Unrealised (losses) / gains arising on revaluation of owner occupied property (2,964) 832 59 832 Net gains on equity securities designated at fair value through through other comprehensive income 18 27 1 13 Losses on defined benefit plans - (2,500) - (2,500) OTHER COMPREHENSIVE INCOME / (LOSS) FROM CONTINUING OPERATIONS 43,641 (56,411) 9,973 (34,518) TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE PERIOD 102,040 (17,024) 35,505 (33,993) ------------- ------------- ------------- TOTAL COMPREHENSIVE INCOME / (LOSS) ATTRIBUTABLE TO: Common Shareholders From continuing operations 57,453 (12,976) 19,205 (18,357) From discontinued operation 517 3,357 - 2,965 57,970 (9,619) 19,205 (15,392) Participating policyholders 1,325 (9,061) 681 (17,221) Non-controlling interests 42,745 1,656 15,619 (1,380) 102,040 (17,024) 35,505 (33,993) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Amounts expressed in US $000 Share Share Retained Participating Non-controlling (unaudited) Capital Premium Reserves Earnings Accounts Interest Total ------------------------------ -------- -------- --------- --------- -------------- ---------------- ---------- Six months to June 30, 2019: Balance, beginning of period 3,061 300,665 (76,995) 374,138 4,078 530,514 1,135,461 Total comprehensive income from continuing operations - - 31,259 26,194 1,325 42,745 101,523 Total comprehensive income from discontinued operation - - - 517 - - 517 Transactions with holders of equity instruments: Movements in treasury shares 1 (30) - - - - (29) Changes in reserve for equity compensation benefits - - 6,296 - - - 6,296 Dividends declared - - - (7,658) - (12,036) (19,694) Transfers and other movements - - 683 474 (1,798) 1,244 603 ------------------------------ Balance, end of period 3,062 300,635 (38,757) 393,665 3,605 562,467 1,224,677 ------------------------------ -------- -------- --------- --------- -------------- ---------------- Six months to June 30, 2018: Balance, beginning of period 3,059 300,470 (47,482) 367,327 865 308,089 932,328 Prior period adjustment - - 94 1,124 - 3,677 4,895 January 1, 2018 adjustment-change on initial application of IFRS 9 - - (217) (10,442) (2,930) (2,352) (15,941) Balance as restated 3,059 300,470 (47,605) 358,009 (2,065) 309,414 921,282 Total comprehensive income from continuing operations - - (32,019) 19,043 (9,061) 1,656 (20,381) Total comprehensive income from discontinued operation - - - 3,357 - - 3,357 Transactions with holders of equity instruments: Movements in treasury shares - 16 - - - - 16 Changes in reserve for equity compensation benefits - - (1,686) - - - (1,686) Dividends declared - - - (7,648) - (10,449) (18,097) Transfers and other movements - - (204) 1,956 (104) 2,868 4,516 -------- -------- --------- --------- -------------- ---------------- Balance, end of period 3,059 300,486 (81,514) 374,717 (11,230) 303,489 889,007 ------------------------------ -------- -------- --------- --------- -------------- ---------------- CONSOLIDATED STATEMENT OF CASH FLOWS Amounts expressed in US $000 ---- Six months to ---- ----- June 30 ----- 2019 2018 Restated (unaudited) (unaudited) ------------ CASH FLOWS Operating activities: Cash from income, interest and taxation 321,026 78,282 Net increase in investments and operating assets (323,927) (253,129) Net change in operating liabilities 43,384 225,265 40,483 50,418 Investing activities (4,761) (6,930) Financing activities (33,271) (17,007) Effects of exchange rate changes (2,730) (5,800) Net change in cash and cash equivalents - continuing operations (279) 20,681 Net change in cash and cash equivalents 17,756 - - discontinued operation Cash and cash equivalents, beginning of period 321,561 338,349 Cash and cash equivalents, end of period 339,038 359,030 ----------------------------------------------- STATEMENT OF INCOME BY SEGMENT Amounts expressed in US $000 Six months to June 30, 2019 (unaudited) Sagicor Sagicor Sagicor Head Inter-segment Total Life Jamaica Life Office eliminations USA and other
--------- -------- ----------- -------------- --------- Total revenue 246,532 353,663 372,499 51,016 (30,887) 992,823 Total benefits and expenses 219,282 280,780 356,179 46,627 5,152 908,020 Loss arising on business combinations, acquisitions and divestitures (347) - - - - (347) INCOME BEFORE TAXES 26,903 72,883 16,320 4,389 (36,039) 84,456 Income taxes (5,205) (16,829) (3,427) (1,119) 6 (26,574) NET INCOME / (LOSS) FROM CONTINUING OPERATIONS 21,698 56,054 12,893 3,270 (36,033) 57,882 Net income / (loss) attributable to shareholders from continuing operations 20,993 24,737 12,893 (13,335) (19,094) 26,194 --------- -------- ----------- -------------- --------- Total Comprehensive income / (loss) attributable to shareholders from continuing operations 27,547 36,580 25,210 (12,920) (18,964) 57,453 --------- -------- ----------- -------------- --------- Six months to June 30, 2018 ------------------------------- Sagicor Sagicor Sagicor Head Inter-segment Total Life Jamaica Life Office eliminations USA and other ------------------------------- --------- -------- ----------- -------------- --------- NET INCOME / (LOSS) FROM CONTINUING OPERATIONS 24,729 45,242 (413) 20,835 (54,363) 36,030 --------- -------- ----------- -------------- --------- Net income / (loss) attributable to shareholders from continuing operations 33,039 22,217 (413) 4,262 (37,562) 21,543 --------- -------- ----------- -------------- --------- Total Comprehensive income / (loss) attributable to shareholders from continuing operations 30,557 1,511 (9,552) 3,476 (38,968) (12,976) --------- -------- ----------- -------------- --------- STATEMENT OF FINANCIAL POSITION BY SEGMENT Amounts expressed in US $000 June 30, 2019 ---------------------------------------------------------------------------- (unaudited) Sagicor Sagicor Sagicor Head Office Inter-segment Total Life Jamaica Life USA and other eliminations ---------- ---------- ------------ -------------- ---------- Total assets 2,032,515 3,265,859 2,688,952 406,415 (532,030) 7,861,711 Total liabilities 1,521,999 2,390,479 2,416,664 839,922 (532,030) 6,637,034 Net assets 510,516 875,380 272,288 (433,507) - 1,224,677 June 30, 2018 ---------------------------------------------------------------------------- Sagicor Sagicor Sagicor Head Office Inter-segment Total Life Jamaica Life USA and other eliminations ---------- ---------- ------------ -------------- ---------- Net assets 524,404 548,699 231,560 (415,656) - 889,007 -------------------- ---------- ---------- ------------ -------------- ---------- PRODUCTS AND SERVICES Total external revenues relating to the Group's products and services are summarised as follows: Amounts expressed in US $000 ---- Six months to ---- ----- June 30 ----- 2019 2018 (unaudited) (unaudited) ------------- Life, health and annuity insurance contracts issued to individuals 677,936 369,847 Life, health and annuity insurance and pension administration contracts issued to groups 147,810 139,563 Property and casualty insurance 26,622 23,495 Banking, investment management and other financial services 90,743 85,329 Other revenues 49,712 15,045 992,823 633,279 ---------------------------------------------- NOTES TO THE FINANCIAL STATEMENTS 1. BASIS OF PREPARATION These condensed interim financial statements have been prepared in accordance with the accounting policies set out in note 2 of the December 31, 2018 audited financial statements, except for the adoption of IFRS 16 - Leases'. This standard became effective from January 1, 2019. IFRS 16 removes the distinction between operating and finance leases and requires recognition of an asset (the right to use the leased item) and a financial liability to pay rentals, for virtually all lease contracts. In accordance with the transition provisions in IFRS 16, the standard has been implemented using the modified retrospective method with no restatement of comparative information. In applying IFRS 16 for the first time, the group has used the practical expedients permitted by the standard. -----------------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
August 13, 2019 05:18 ET (09:18 GMT)
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