Market gains drive Sagicor Group’s bottom line
SAGICOR Group Jamaica Limited delivered one of the strongest performances in its history in 2025, with net profit attributable to shareholders surging 76 per cent to $16.22 billion, as solid core insurance earnings and investment gains more than offset the impact of Hurricane Melissa.
The financial conglomerate also recorded $6.26 billion in unrealised gains on its investment portfolio, reflecting the impact of earlier portfolio repositioning amid shifting market conditions. That was complemented by a 10 per cent rise in interest income to $28.80 billion, driven by loan growth at Sagicor Bank Jamaica Limited and higher yields on deposits.
The group’s insurance service result doubled from $6.24 billion to $12.77 billion, as its general insurance subsidiary, Advantage General Insurance Company Limited (AGIC), accounted for the impact of Hurricane Melissa. The property and casualty segment recognised $22.66 billion in claims reserves, largely offset by $22.34 billion in reinsurance recoveries under IFRS 17 accounting rules.
“Core earnings, which provide a clear measure of the underlying performance of Sagicor Group Jamaica by excluding market-related impacts on insurance assets and liabilities as well as other non-recurring items, also showed material improvement year over year,” the directors’ statement said.
The group’s long- and short-term insurance businesses increased revenue by 11 per cent to $60.27 billion, supported by $1.1 billion in new sales from group health and life products as well as growth in other insurance lines. The commercial and investment banking segments also recorded higher earnings, driven by loan growth and improved net trading gains.
“Our 2025 performance restored earning growth, improved the quality of our profitability, and reinforced the resilience of our balance sheet. The year was also marked by one of the most severe hurricanes in our nation’s history,” said Sagicor Group Chief Executive Officer Christopher Zacca in a press release.
Even after higher finance expenses related to reinsurance contracts, the net insurance and investment result increased 38 per cent to $35.81 billion. Administrative expenses rose 12 per cent to $31.64 billion, and the group recorded a $186.07 million goodwill impairment at Sagicor Investments Jamaica Limited. Despite these factors, profit before tax climbed 66 per cent to $21.75 billion, with consolidated net profit reaching $16.44 billion. Earnings per share amounted to $4.16.
Sagicor Group’s consolidated total assets increased 18 per cent to $703.60 billion, driven largely by a 15 per cent expansion in financial investments to $299.18 billion as the group redeployed cash into higher-yielding assets. Loans and leases also grew 14 per cent to $157.56 billion, while reinsurance contract assets rose by $24 billion to $27.56 billion following hurricane-related recoveries. Cash resources declined 42 per cent to $13.20 billion, reflecting the shift into investments and claims-related funding flows.
Total liabilities increased 19 per cent to $586.29 billion, reflecting higher deposits and expanded repurchase agreements, which totalled $331.79 billion. Insurance contract liabilities rose 24 per cent to $199.64 billion, driven largely by hurricane-related claims. Total equity increased 13 per cent to $117.30 billion, with $115.05 billion attributable to shareholders.
The proposed Sagicor Group Caribbean Limited transaction is expected to close in 2026 and would consolidate the group’s Caribbean operations under a single holding company. Shareholders of Sagicor Group Jamaica are scheduled to vote on the arrangement later this year. If approved, Sagicor Financial Company Limited’s (SFC) ownership stake would increase to 55 per cent. SFC is set to release its fourth-quarter results on March 11, which is expected to provide additional detail on the group’s core earnings performance.
Sagicor Group Jamaica closed Monday at $40.73, giving it a market capitalisation of $159.07 billion and reinforcing its position as the largest company listed on the Jamaica Stock Exchange.
The top 10 shareholders controlled 87.63 per cent of the company at the end of 2025. Zacca increased his stake by 408,156 shares to 3,395,568 shares, while several senior executives, including Dr Sharma Taylor, Andre Ho Lung, Mark Chisholm and Willard Brown, also raised their holdings during the year.
“Resilience is built into how the group operates. We absorbed significant external shocks, supported our clients and communities in times of real hardship, and still delivered one of the strongest performances in our history. This is a result of consistent, sound leadership and prudent risk management. We move forward with a focus on continued sustainable growth, to ensure that Sagicor remains a pillar of stability for the country we serve,” Zacca closed.