CARIBBEAN Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the CariAA+ regional and jmAAA Jamaica national-scale ratings on a Sagicor Financial Company Limited (SFC) debt issue of up to US$76 million or its Jamaican-dollar equivalent, with a stable outlook despite rising costs and economic risks across some of the group’s key markets.

The ratings agency cited SFC’s strong competitive position, geographic diversification and continued investment in digital transformation and product development.

CariCRIS expects SFC to report consolidated net profit of US$124.5 million in 2026, slightly above the US$120.05 million recorded in 2025. The rating agency expects lower operating costs from digitisation and greater integration across the group to offset some pressure on investment income.

SFC nevertheless reported a first-quarter net loss of US$28.98 million, reversing a US$19.90-million profit a year earlier, mainly because of unrealised investment losses and other adverse market movements.

SFC has introduced new products in Canada and the United States as part of its strategy to expand in both markets. These include a fixed-indexed annuity through Sagicor Life USA and Ivari’s tiered “Simply” insurance product, designed to improve affordability and access in Canada.

The initiatives follow the 2025 migration of administrative data in Canada to DXC Assure Cloud, an Amazon Web Services (AWS)-powered cloud hosting service, which is expected to enable faster product and service launches along with greater integration of artificial intelligence (AI) and data analytics in its Canadian business. The new platform is expected to simplify Ivari’s technology infrastructure and reduce costs by up to 40 per cent over the medium term.

Within the Caribbean, SFC automated its debit and credit card processing in the Cayman Islands and introduced a US dollar-denominated debit card and a digital payment application called Sagicor Pay via Sagicor Bank (Barbados) Limited.

“In Jamaica, Sagicor Bank Jamaica Limited (SBJL) continued to increase its accessibility and operational efficiency through enhancements to its online banking platforms and the introduction of new branch concepts aimed at simplifying transactional processes,” the ratings agency noted.

Despite the benefits expected from its digital transformation, CariCRIS cautioned that SFC remains exposed to macroeconomic and sovereign-related risks in key markets, including Canada and Jamaica. Elevated inflation, tighter global financial conditions and weaker growth in some Caribbean economies could reduce consumer spending, business activity and demand for financial products.

“These factors may weaken premium growth, reduce new business generation, and increase policy surrender rates across SFC’s insurance operations, likely dampening growth prospects within SFC’s key operating segments,” CariCRIS explained.

The proposed combination of Sagicor Group Jamaica Limited (SGJ) and Sagicor Life Inc under Sagicor Group Caribbean Limited (SGC) is expected to close in 2026, subject to regulatory and SGJ shareholder approvals, SGJ securing the required financing and other customary closing conditions. SFC expects the transaction to strengthen its competitive position in the Caribbean and streamline operations through greater integration of shared resources.

SGC, which was incorporated in Barbados on June 10, is intended to replace SGJ as the company listed on the Jamaica Stock Exchange. If the transaction is completed, Jamaican investors would therefore hold shares in a Barbados-incorporated company owning substantially all of SFC’s Caribbean operations. SFC has said applicable Caricom double-taxation arrangements should prevent Jamaican shareholders from being taxed twice on dividends.

Under the proposed structure, Christopher Zacca would oversee the Caribbean operations, Eric Sandberg would continue to lead Sagicor Life USA, and Andre Mousseau would oversee Ivari and the wider SFC group.

“Over the medium term, this should buttress SFC’s ability to capitalise on long-term growth opportunities within the Caribbean market, while enhancing operational resilience and supporting improved scalability,” CariCRIS said.

While SFC has continued returning capital to shareholders, CariCRIS said the ratings could come under pressure if future acquisitions significantly weakened its capitalisation, including by pushing the group’s Life Insurance Capital Adequacy Test ratio—a regulatory measure of capital strength—to 100 per cent or below.

SFC renewed its share-repurchase programme on June 24, authorising the purchase of up to 9.19 million common shares over the following year. Since the programme began in June 2020, the company has repurchased more than 11 million shares for over US$66 million. It also paid approximately US$220 million in dividends between 2020 and 2025 and increased its annual dividend by 11 per cent in March to US$0.30 per share.

Together, the dividends and share repurchases have returned approximately US$286 million to shareholders since 2020.