DESPITE recording a net loss attributable to shareholders of US$3.61 million ($514.22 million) in its 2020 financial year (FY), Sagicor Financial Company (SFC) saw a massive rebound and recorded its highest net profit attributable to shareholders of US$133.18 million ($20.65 billion) for 2021.

This surpassed the US$72.23 million ($8.98 billion) set in 2017 under Sagicor Financial Corporation before it merged with Alignvest Acquisition II Corporation in December 2019. The record profit was achieved from historic revenues of US$2.36 billion ($360.29 billion), a 26 per cent improvement on the US$1.88 billion earned in 2020. The 2021 record was depressed by US$2.6 million due to its equity investment in Playa Hotels and Resorts NV. The financial conglomerate has a 49.11 per cent controlling interest in Sagicor Group Jamaica Limited (SJ) along with its wholly owned subsidiaries of Sagicor Life USA (SLU) and Sagicor Life in Barbados.

“2021 was a record year for Sagicor and one of the strongest in our history. Sagicor Life posted a robust performance considering the continued challenging operating environment from the pandemic in some of its key markets. Our Sagicor Life USA segment now represents the largest portion of our assets and revenues, and we expect this to continue. Our colleagues worked diligently during another difficult year to achieve great outcomes for our customers across the Caribbean and the United States and to deliver strong results to our shareholders. I am extremely proud of our team members for their commitment and contributions to the communities in which they live and work,” said SFC Group President and CEO Dodridge Miller in the shareholder release.

Though SFC’s revenue for the fourth quarter decreased by seven per cent to US$629.5 million, the net profit attributable to shareholders rose by 44 per cent to US$41.9 million. This resulted in an earnings per share of US$0.293 and a return on equity of 15.1 per cent. Sagicor Life USA as a segment had a 57 per cent rise in revenue to US$1.07 billion which had a net profit of US$57.60 million. Sagicor Life’s revenue and net profit declined by four and eight per cent to US$504.69 million and US$43.24 million, respectively, arising from lower premiums due to the shock in the economic performance in the Southern Caribbean and a large single premium annuity sale in the prior period.

SFC’s total asset base grew by 12 per cent to US$10.38 billion ($1.58 trillion) as financial investments rebounded to US$7.89 billion following the asset price crash in 2020. Total liabilities rose by 15 per cent to US$8.71 billion while equity attributable to shareholders increased by two per cent to US$1.13 billion. SFC declared a dividend of US$0.05625 payable on April 25 to shareholders on record as of April 4. It totals US$8.05 million and is the ninth dividend paid since SFC listed on the Toronto Stock Exchange (TSX). SFC’s share price marginally rose to CA$6.40 which is well below its book value of US$7.92 or CA$10.08.

Based on the performance of SFC in the final quarter, JMMB Group Limited (JMMBGL) should record a US$9.72 million ($1.51 billion) share of profit for its third quarter (October-December) based on its 23.20 per cent stake in the group. Proven Investments Limited in turn should record a share of profit of US$1.94 million ($301.61 million) due to its 20.01 per cent stake in JMMBGL. SFC will be hosting an investor briefing on March 28 at 10:00 am Jamaican time or 11:00 am Toronto time.

“The group’s financial results in Q4 2021 continue to reflect positive emergence from our in-force life insurance portfolios, and robust growth in our US segment, while still operating below full potential in our Caribbean markets due to the continued effects of the pandemic on economic activity and travel. In 2022, the economies in which we operate are seeing positive signs of returns to normal economic activity, including an improving forward outlook for tourism. We will continue to monitor the situation and anticipate resuming specific guidance with respect to earnings targets when the timing of economic recovery becomes more certain. We are excited about what lies ahead in 2022 and beyond, having demonstrated our company’s strength in 2021. Sagicor is well-positioned to continue the positive momentum as we execute our strategic growth plans,” Miller closed on the outlook for 2022.