DESPITE increased expenses, Sagicor Life Jamaica Group’s profits soared in its first quarter.

Sagicor made $1.8 billion before taxes in the three-month period ended March 31, up almost $140 million from the same period last year, according to the company’s unaudited consolidated financial statements.

The insurance company’s profits were driven by the strength of its new clients and satisfactory returns on its investments, the statements said.

“Impressive amounts of new business were written across all lines in the first quarter and our conservation measures continue to be manifested in growth.”

Revenues were also strengthened by its financial investments, the value of properties and equipment owned and loans given.

Half of the benefits paid out by the company were for health insurance claims, Sagicor said.

Administrative expenses totalled $1.67 billion, 15 per cent more than the previous year. “The increased expenses reflect higher compensation costs,” but Sagicor said it continues to try to contain expenses and become more efficient.

Commissions and other wage-related expenses came to almost $770 million, up 11 per cent from the same three-month period a year ago.

Pan Caribbean Financial Services, (PCFS), part of the Sagicor Group, did not perform as well as expected for the first quarter.

The banking group, of which Sagicor owns 85 per cent, made $452 million after taxes. That’s down 10 per cent from the same period in 2011 due to increased operational expenses.

Last year, Sagicor earned $6.6 billion before taxes but even with the great performance over the past few years, the company remains cautious in its activities given the tough economic climate.

“I must say here that I am very concerned for the Jamaican economy,” President and CEO Richard Byles told Caribbean Business Report in March. The country had some tasks we needed to do over the last 18 months and we have not done them.

“The situation is worse today than it was 18 months ago. It now makes the job twice as difficult and it makes the tough decisions twice as tough.”

The Group data also includes Sagicor’s operations in the Cayman Islands.