Sagicor Life Jamaica, the country’s largest life insurer posted net profits of J$4.7 billion for the year-ended 31 December 2010, a 6 per cent increase on 2009’s year-end figure. However total revenue, (largely driven by net premium revenue of J$16 billion) dropped to J$25.6 billion, J$2.2 billion less than the J$27.8 billion posted for 2009. The company says this is due to the effect of last year’s revenue from discontinued operations and also the impact of lower interest rates and unrealised exchange losses in 2010. The year 2010 saw Sagicor’s assets grow by J$8 billion to J$143 billion largely driven by financial investments which contributed J$106 billion.

With the impact o the global financial crisis still hurting Jamaica and a contraction of the local economy which is seeing a shrinking of disposable income and a loss of jobs, Sagicor Jamaica was still able to see its new insurance sales remain strong across all its businesses and provide a healthy boost to its net premium revenues. A large single premium in 2009 did however put a bit of a damper on the performance under review.

Sagicor Jamaica’s investments division spearheaded by Rohan Miller and Brenda Lee-Martin has contributed significant revenues over the years. However the imposition of the JDX and a push for lower interest rates has affected its performance. However net investment income benefited from significant realised capital gains. The team here has decided to look to longer term securities as a buffer against continuing falling interest rates.

Many of Jamaica’s leading companies bemoan the high operating costs in a contracting market. Sagicor Jamaica has made a concerted effort to contain costs and it seems to have paid off in the year under review.For 2010 administrative expenses came in at J$6.23 billion, a marginal decline on 2009’s figure of J$6.37 billion. Commissions and related expenses for the year ended December 2010 dropped slightly, coming in at J$2.74 billion, compared with J$2.86 billion in the prior year.

All told, Individual Life, a major revenue line posted better revenues in 2010 but a smaller after tax profits than 2009. Here total revenues came to J$8.51 billion producing after-tax profits of J$1.66 billion. In 2009, Individual Life generated total revenues of J$7 billion and after tax profits of J$1.71 billion.

The real driver of revenues are Employee Benefits which for the year under review brought in revenues of J$12.1 billion producing a net profit of J$1.48 billion. In the preceding year revenues came in at a whopping J$15 billion resulting in after tax profits of J$1.55 billion.

Stockholders’Equity as at December 2010 was J$25.2 billion compared to J$19.86 billion as at December 2009. This 27 per cent increase was in part due to the growth in Retained Earnings and the improved fair values of securities held as Available-for-Sale, for which the after tax unrealized gains are reflected as a component of Equity. Sagicor Life Jamaica’s Board of Directors declared dividends of J$1.62 billion to Stockholders or a dividend per share of 43 cents during 2010.

Looking ahead, Sagicor Life Jamaica’s CEO and President Richard Byles concluded: “Growth is expected but not at a particularly robust rate. There will be opportunities for new products and services and a greater emphasis on winning and keeping our customers. In this environment, we will not rest on past success. Instead, we are on a drive to improve customer service, improve efficiency and deliver the results that our shareholders have come to expect from us.”