SAGICOR Life Jamaica (SLJ) will begin the first phase of its reorganisation as a holding company before the end of the year.

SLJ shareholders in September unanimously approved the move to establish a new listed holding company to carry the shares of Sagicor Life, the insurance arm; Sagicor Investments; and the commercial bank, Sagicor Bank.

At the end of the year the holding company will be set up and everyone’s shares will be exchanged from SLJ to the group, said Richard Byles, president and chief executive officer of the company.

“The rest of the changes in the organisation, which includes the banking arm, the investment arm and its subsidiaries will roll over into 2014,” Byles told the Caribbean Business Report.

The value of the new shares to be issued in Sagicor Group will be identical to the shares previously held in SLJ.

SLJ reported a nine per cent increase in earnings for the three months ended September, posting $1.5 billion in net profit for the review quarter compared to $1.4 billion last year.

The increase in net profit emanated from strong insurance and annuities business growth, with much higher earned premiums, larger unrealised foreign exchange gains, as the Jamaican dollar depreciated about 2.6 per cent in the third quarter compared to 1.5 per cent in last year, according to Ivan Carter, chief financial officer of the company.

Moreover, the group carried more US dollar denominated assets, he said.

These factors were countered somewhat by higher trading gains from sale of securities last year when compared to this year.

Meanwhile, SLJ’s revenue for the quarter under review grew by 52 per cent year over year from $8.2 billion to $12.4 billion. Net premium revenue increased by 92 per cent year on year from $5.1 billion to $9.4 billion, fees and other revenues grew by 20 per cent, up from $922 million. Net investment income however fell by seven per cent, down from $2.1 billion.

Total benefits and expenses invariably grew, moving from $6.5 billion during the corresponding period last year to $10 .7 billion.

More specifically, net insurance benefits incurred increased by 15 per cent, year over year from $2.6 billion to $3 billion, changes in insurance and annuity liabilities more than tripled, moving from $1.2 billion to $4.7 billion and there was a 17 per cent jump in administrative expenses.