Sagicor USA, new company prize

Sagicor’s foray into the United States market has been so successful that the business segment has emerged as the jewel in the crown of the insurance and financial services company.

The multinational, which was started in Barbados 180 years ago, but is now controlled by Canadian interests, revealed in its first quarter filing for the 2022 fiscal year that of the three main reporting operating segments, the United States operation was the outstanding performer.

For the three-month period ending March 31, Sagicor Financial Company had total revenue of US$680.6 million (BDS$ 1.36 billion) which represented a 58 per cent increase on the corresponding quarter of 2021.

There was a 102 per cent increase in net insurance premium income for the first quarter of US$556.4 million (BDS $1.11 billion) or a 102 per cent increase on the 2021 performance.

When the revenues of the business segments for the quarter were compared Sagicor Life USA contributed U$S372.3 million (BDS$ 743.6 million), followed by Sagicor Jamaica with US$ 161.7 million (BDS$ 323.4 million) with Sagicor Life which includes the southern Caribbean) with US$124.2 million (BDS$ 248.2 million).

Sagicor Life USA enjoyed a remarkable 236 per cent increase in its revenue when compared to the corresponding quarter of 2021. All the other business  segments recorded slight declines.

Commenting on the substantial advancement in Sagicor’s financials, group president and chief executive officer Barbadian Dodridge Miller told shareholders in a statement that there was “excellent revenue growth”.

He stated: “Sagicor continued 2022 where it left off from its record 2021 with excellent revenue growth and profitability continuing into the quarter. During [the first quarter of 2022], we delivered US$42 million (BDS$84 million) in net income to our shareholders.”

Miller added: “We remained focused on executing our growth strategy in our key markets. In the US, which now represents the largest portion of our assets and revenues, we saw continued growth fuelled by multi-year guaranteed annuities sales.

“In the Caribbean, we are excited to announce the upcoming launch of our digital bank in Barbados as we continue to evolve how best to serve our customers and find new avenues for growth.”

Regarding the outlook for the remainder of 2022, the company outlined that the results reflected an emerging stability in its in-force life insurance portfolios and “robust growth” in the American market.

It added: “We are still operating below full potential in our Caribbean markets due to the continued effects on our policyholders of reduced economic activity in the last two years due to the pandemic.

“In 2022, the economies in which we operate are seeing positive signs of returns to normal economic activity, including an improving forward outlook for tourism.

“However, increasing global rates of inflation and geopolitical instability are contributing to uncertainty around the resumption of full economic recovery in our markets. We anticipate resuming specific guidance with respect to earnings targets when the timing of economic recovery becomes more certain.”

Sagicor, which once languished on regional stock exchanges before it was listed on the Toronto Stock Exchange by its new majority owner, currently has a book value of US$7.88 or BDS$15.76 per share. (IMC1)