Insurance giant Sagicor Financial Company is reporting earnings of US$402 million in revenue and a net income loss to shareholders of US$3 million, for the third quarter financial period ending September 30, 2020.
The revenue earnings represent a two per cent decline, when compared to the US$412 million recorded for the same period last year.
Earnings per share was a loss of $0.02 and total comprehensive income to shareholders was US$3.3 million, compared to the US$6.3 for the same period in 2019.
Group President and Chief Executive Officer Dodridge Miller said the performance for the quarter demonstrated that Sagicor continued to generate stable revenue while maintaining strong service levels to its customers against the ongoing backdrop of the global COVID-19 pandemic.
He said: “Our teams have stepped up innovation in providing new products that meet evolving needs such as the Health Care Heroes suite of products in the Caribbean and by leveraging our differentiated technology solutions to more efficiently reach our customers. Our experience has shown that insurance, such as life and health, is coverage that our customers choose to maintain or enhance, especially during times of crisis.”
“Our balance sheet remains strong and we are able to withstand changing economic conditions while supporting business growth. Our new business generation is improving,” Miller added.
However, he said the outlook for the markets in which the company operates remains uncertain given that the duration and extent of the contraction of economic activity owing to the COVID-19 pandemic remained unpredictable.
“The company’s financial performance for the full year 2020 continues to be uncertain as the length and severity of the economic contraction, resulting from the pandemic, remains unpredictable and variable in the regions in which we operate,” Miller said in a statement Friday evening to report on the third quarter results.
“Sagicor has put in place a series of customer initiatives to mitigate the effect of the pandemic on our operations and financial results. We are cautiously optimistic that signs of improving conditions will persist through the fourth quarter of 2020 and into 2021. However, we will not be offering specific guidance on financial results until there is a more concrete resolution of the global pandemic,” he added.
The company’s net insurance premiums were up one per cent year-on-year to reach US$264.9 million.
Since the June 2020 start of the buyback programme that would allow Sagicor to repurchase up to eight million of its common shares under a normal course issuer bid, the company purchased 2 588 000 shares in the open market for cancellation for an aggregate purchase price of approximately US$11.3 million, as at September 30, 2020.
