Rebounding from significant property insurance losses on its international portfolio in 2011, the Sagicor group recorded BDS$36.6 million more profit for the first three quarters of this year.
The Barbados-headquartered group recorded US$38.6 million (BDS$75.7 million) net income for the nine months ending September 30, 2012 – a US$18.3 million improvement on group net income for the same nine months in 2011.
Net income attributable to shareholders improved to US$18.2 million, up from US$0.9 million in Q3 2011.
Earnings per common share totalled US$0.058 cents and the annualized return on shareholders’ equity was 4.2 per cent.
Meanwhile, total comprehensive income for the period amounted to US$42.1 million compared to US$14.3 million in 2011. The portion attributable to shareholders totalled US$24.7 million, representing an annualized return of 5.7 per cent.
Revenue for the period, however, declined by US$44.7 million to reach US$980.1 million. Chairman Stephen McNamara noted that this was anticipated because of reduced premium exposure to international property insurance lines.
Total benefits incurred for the nine months were US$587.2 million as compared to US$644.9 million in the corresponding period in 2011.
The chairman noted that this reduction was attributable to the improved claims experience from reduced premium exposure on international property insurance lines.
“In addition, there was a reduction in the insurance commissions expense during this period compared to 2011, which led to an overall reduction in total expenses,” he said.
Since Sagicor’s profitability improved, the charge for income taxes increased to US$15.3 million from US$8.6 million for the corresponding nine months in 2011.
The group’s assets amounted to US$5.6 billion, of which the largest component was US$4.3 billion in financial investments.
Liabilities totalled US$4.7 billion, policy liabilities of US$3.1 billion being the largest component. Equity amounted to US$861.6 million.
McNamara noted that during the quarter the financial strength credit ratings of Sagicor, through its principal subsidiary Sagicor Life Inc., were reaffirmed by AM Best and Standard and Poor’s (S&P) at A- (Excellent) and BBB-, respectively.
“The quarter saw the downgrade of the Government of Barbados’ rating by S&P to BB+ but Sagicor maintained its BBB- due to the geographical diversification of its business.
“Of note is that Sagicor maintained its ratings even though many Caribbean jurisdiction face significant fiscal economic challenges,” he said.
McNamara noted that Sagicor continued to write good volumes of new business and achieve consistent levels of retention on its life, health and annuity insurance business.
The board declared half-yearly dividends of US$0.035 cents per preference share and US$0.02 cents per common share payable on November 15. (NB)
