Against a backdrop of contrasting regional and international economic conditions, the Sagicor Group achieved improvements in revenue, net income and equity for the 2017 financial year.
In a report on the results which has been posted to the Trinidad &Tobago Stock Exchange, Chairman Stephen McNamara told shareholders: “Regionally, the Caribbean experienced modest economic growth, but continued to engage in fiscal consolidation through various measures of tax increases and public expenditure cuts to reduce high levels of public debt. Internationally, the USA experienced growth, increases in interest rates and a significant, but favourable change in its tax regime for business.”
He said the Group’s net income increased by US$6 million from US$109.3 million in 2016, while Group equity was US$932.3 million, compared to US$795.4 million in the prior year, an increase of US$136.9 million.
Net income attributable to shareholders was US$72.2 million, compared to US$61.7 million in the prior year, an increase of US $10.5 million. Earnings per common share was US 23.7¢—an annualised return on common shareholders’ equity of 13.3 per cent compared to 12.6 per cent for the prior year.
Total revenue increased to US$1,220.9 million, compared to US $1,134.1 million the previous year, an increase of US$86.8 million or 7.7 per cent. Net premium revenue reached US$745.6 million, compared to US$664 million, an improvement of US$81.6 million or 12.3 per cent. Premium income increased in all segments and benefited from the issuance of a single premium annuity relating to the Group’s Jamaica segment.
McNamara said: “Exchange gains/(losses) also showed a loss of US$4.2 million, compared to gains of US$12.6 million in the prior year, a reduction of US$16.8 million. Foreign exchange movements were affected by a strengthening of the Jamaica dollar when compared to the United States dollar in 2016, resulting in foreign exchange declines in financial assets denominated in United States dollars in our Jamaica segment.
“Overall, the company experienced a gain on translation of the Jamaica segment, which is reported in other comprehensive income. In addition, the prior year included exchange gains relating to declines in the Trinidad dollar, when compared to the United States dollar, there was no significant foreign exchange movement, relative to this currency in 2017.”
As at December 31, 2017, Sagicor’s assets amounted to US $6.8 billion, up from US$6.5 billion in 2016 and liabilities closed at US$5.9 billion, compared to US$5.7 billion for the previous year.
Sagicor is listed on the Barbados and Trinidad Stock Exchanges and the London Exchange. ¤