SAGICOR Life Jamaica, the country’s largest life insurer, reported mixed fortunes for the first quarter ended 31 March 2010. The company’s total revenues for the quarter under review came to J$6.6 billion, an increase on the J$6.4 billion posted for the same period last year. Total revenues were driven largely by net investment income which rose to J$2.26 billion from the J$1.54 billion registered for the corresponding quarter in 2009.

Net premium revenue increased marginally moving to J$3.89 billion for the three- month period ended March 2010 compared to J$3.54 billion for the same period in 2009. Fees, commissions and other revenues dropped notably to J$498.2 million when compared to the impressive J$762.9 million registered for the first quarter last year. Sagicor’s Jamaican operations produced net profits attributable to Stockholders of J$1.035 billion for the three-month period under review.

In his chairman’s report, R Danny Williams, commenting on the company’s profit performance, said: ” Net profits attributable to stockholders was 28 per cent below the amount recorded for the corresponding period in 2009, which included certain significant items that were not repeated in 2010.” Sagicor saw its total assets for the period under review grow to J$145.5 billion, a marked improvement on the J$120.1 billion registered for the same period last year.

This performance was bolstered by Financial Investments and Securities Purchased Under Resale Agreements which came to J$107.3 billion. This compared most favourably with the J$85.7 billion for the corresponding quarter last year.

A notable determinant of how a corporation is performing is the cash flow it generates from operating activities. Here, Sagicor Life Jamaica managed to generate J$3.206 billion for the period under review as opposed to the J$2.869 billion registered in March 2009.

The main factors here were changes in operating assets and liabilities (J$776.1 million) and Interest Received (J$3.8 billion). Stockholders’ Equity as at March 2010 was J$21.8 billion compared to J$19.9 billion as at December 2009.

The Board declared dividends of J$789.8 million to stockholders, or a dividend per share of 21 cents. Benefits paid to policyholders were J$2.292 million or 8 per cent lower than that for the corresponding period in 2009. Death claims and cash surrender expenses were notably higher than in the prior year, while health claims showed a more favourable experience.

Administrative expenses of J$1.313 billion were 6 per cent lower than the first quarter of the 2009 amount of J$1.39 billion. The 2009 amount included restructuring costs.

Speaking with Caribbean Business Report earlier this week, Sagicor Life Jamaica’s CEO and President Richard Byles said: “We are pleased that our revenues are up 13 per cent on the same period last year. The new business we are writing is also an improvement on last year. I must say here that the product mix is not what we want it to be right now but we will be looking to correct that in the second quarter.

“It is encouraging to see that administrative expenses have fallen to 20 per cent of total revenues. Last year they were 23 per cent and goes to show that we are managing expenses well. Equity is up by J$2 billion after paying out dividends of J$790 million. Last year we acquired an additional 36 per cent of Pan Caribbean Financial Services and this period under review coincides with its President and CEO Donovan Perkins delivering his best quarter ever.

“Our objectives remain: Operational efficiencies, the cross-selling of products, a strong balance sheet and the delivery of commendable customer service.”