SAGICOR Group Jamaica increased first quarter earnings by 76 per cent over the corresponding period last year that was hit by two debt exchanges.

Net profit for the period ending March 31, 2014 was $1.1 billion compared to $620.15 million over the same three months last year. Last year’s bottom line was impacted by the company’s participation in the National Debt and Private Debt Exchanges (NDX and PDX respectively).

Total revenues for the period was $12.6 billion, 58 per cent higher than during the comparative period in 2013.

The performance reflected significant improvements across all segments for the financial services group. Sagicor has a flagship insurance business, as well as investment and banking arms.

Its individual insurance line posted a net profit of $276.9 million in the 2014 first quarter compared to $17.1 million a year earlier.

Employee benefits contributed earnings of $675.2 million or 42 per cent higher than last year’s first quarter, while banking and asset management turned around from a $17.8 million loss position to contribute $304.6 million in after tax profits.

Net Premium Income, in aggregate, was 47 per cent more than that for 2013, the company told shareholders in its financial report.

“With respect to the individual lines of business, including Universal Life Segregated Funds, earned premiums were up by 12 per cent while group insurance and annuity premiums were 88 per cent higher than prior year, resulting mainly from a large annuity recorded in the quarter,” the company said.

Investment income, before interest expense and capital gains, was higher than in the prior year by 27 per cent, reßecting portfolio growth and units’ appreciation in the segregated funds, according to the financial report. The firm added that an eight per cent increase in fees and other revenues was influenced by higher unrealised foreign exchange gains as a result of the devaluation of the Jamaican dollar.

The Banking Group generated net proÞts of $329.39 million compared with $6.95 million for the first quarter of 2013, which included realised capital losses from the NDX and PDX.

Looking ahead, Sagicor said 2014 will be another challenging year, which will include “signiÞcantly higher taxes for the Þnancial services sector”. But the company noted that it is encouraged by various positive economic indicators.

“We are encouraged by the economic growth and the uptick in business conÞdence,” shareholders were told by the company, which added that it plans to rise to the challenges.