Sagicor Financial prepares to delist in Barbados and Trinidad
Targets expansion of banking and asset management in the CaribbeanWednesday, June 23, 2021
Sagicor Financial Company Limited is moving to remove listings on the Barbados and the Trinidad and Tobago Stock exchanges having ceased trading on these platforms. In its latest annual report, the company, which now operates in 20 markets, says applications for delisting have been submitted.
In its report, released this week, Sagicor management indicated that the company, which is positioned as a leading insurance and financial services provider, is focusing on expanding its banking and asset management business in the Caribbean, where it has strong brand recognition and market share.
Sagicor operates its business primarily through its three reporting operating segments, namely Sagicor Life, Sagicor Jamaica, and Sagicor Life USA.
The company's principal markets are Barbados, Jamaica, Trinidad and Tobago, and the United States. Altogether it operates in 17 countries throughout the English-speaking Caribbean and the Dutch countries of Curacao and Aruba.
Sagicor demutualised in November 2002 and listed its shares on the Barbados Stock Exchange (BSE: SFC), with subsequent listings on the Trinidad and Tobago Stock Exchange (TTSE: SFC) and the London Stock Exchange (LSE: SFI). Sagicor Financial Corporation later moved its corporate domicile from Barbados to Bermuda and continued as Sagicor Financial Corporation Limited (SFCL), an exempted company, on July 20, 2016.
As a result of its completed business combination with Alignvest Acquisition II Corporation (AQY) on December 5, 2019, the new Sagicor, known as Sagicor Financial Company Ltd, now trades on the Toronto Stock Exchange under the new symbols “SFC” and “SFC.WT”.
With a listing on the Toronto Stock Exchange, Sagicor Financial Corporation Limited's common shares, formerly listed on the London Stock Exchange, have ceased trading and have been delisted from the London Stock Exchange.
Management said that while it is still too early to assess the full impact of its listing in Canada, “our new stock exchange listing exposed Sagicor to a more liquid equity capital market and brought in over US$450 million of additional capital and new long-term investors to Sagicor.”
For the financial year 2020, Sagicor earned total revenues of US$1.9 billion, which management said was despite the challenging environment.
Sagicor Group recorded a net loss of US$15.1 million for the year ended December 31, 2020, compared to net income of US $104.1 million for the same period in 2019.
Net loss from continuing operations attributable to common shareholders was US $3.6 million compared to net income US $44.0 million for the same period in the prior year.
The main contributing factors to the net loss, management outlined, were slower new business sales in the first half of 2020, higher expected credit losses (ECLs), the strengthening of actuarial liabilities within the USA segment and in the case of group net income, share of net loss and impairment related to associated company investment in Playa Hotels & Resorts, all due to the economic environment occasioned by the pandemic.
The group was also impacted by net mark-to-market losses as a result of the markets' response to COVID-19 coupled with declines in fees and other revenues associated with the hospitality and banking businesses.
Revenue by line of business in 2020 was nine per cent from banking, investment management and other financial services; four per cent from property and casualty insurance; 16 per cent from life, health and annuity insurance issued to groups; 68 per cent from life, health and annuity insurance issued to individuals; one per cent from hospitality, and two per cent from other sources.
The company closed the year with a minimum continuing capital and surplus requirement (MCCSR) of 252 per cent, well above target capital standards.
The group generated fees and other revenues of US$139.0 million for the year ended December 31, 2020, compared to US $168.0 million for the prior year, a decrease of US $29.0 million.
Administrative expenses also include restructuring charges related to the retirement of a senior executive.
Commissions and related compensation totalled US $121.2 million for the year under review, closing US $1.1 million above the US $120.1 million reported for the same period in 2019; a direct impact of higher new business when compared to the prior period.
The debt to capital ratio was 22.2 per cent as at December 31, 2020 compared to 22.8 per cent at December 31, 2019. As of December 31, 2020, capital resources declined to US $2,128.2 million compared to US $2,266.3 million reported at the end of December 2019, a reduction of US $138.1 million.
Management concluded, “We believe we are well positioned to execute our growth plans with a strong foundation of financial, operational and risk management strengths.”
Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at https://bit.ly/epaper-login