August 15, 2024
Sagicor Group Jamaica Limited (SJ) for the six months ended June 30, 2024, reported a 16% increase in Insurance revenue totaling $25.63 billion compared to $22.10 billion in the corresponding period last year. Insurance revenue for the second quarter had an 18% increase to close at $13.12 billion compared to $11.12 billion for the comparable quarter of 2023.
Insurance service expenses amounted to $20.85 billion (2023: $18.24 billion), this represents an increase of 14% year over year. Consequently, insurance service result increased by 21% to $2.83 billion compared to $2.33 billion for the six months ended June 30, 2023. The company booked insurance service result of $1.80 billion for the second quarter versus $1.06 billion reported for the similar quarter of 2023.
Net insurance finance expense closed at $1.34 billion (2023: $2.20 billion), while Unrealized capital gains was $1.01 billion in 2023 to a loss of $1.94 billion in the period under review. As a result, net investment income for the six months amounted to $10.93 billion, a 10% decrease relative to $12.11 billion reported in 2023.
Net insurance and investment result for the six months amounted to $12.42 billion, a 1% increase relative to $12.24 billion reported in 2023. Net insurance and investment result for the second quarter amounted to $7.23 billion (2023: $6.42 billion).
Other operating expenses totalled $15.29 billion, a 22% increase from the corresponding period last year. (2023: $12.55 billion).
Management noted, “SGJ also faced increased expenses from inflation and from continued investments in digital platforms and data security that are intended to strengthen our competitive position in the medium term. The Group continues to navigate volatility in the capital markets and the half-year results show significant unrealised mark-to-market losses when compared to the prior year”.
Profit before taxes for the six months amounted to $5.53 billion, a 28% decrease relative to $7.71 billion reported in 2023. Profit before taxes for the second quarter amounted to $3.75 billion (2023: $4.63 billion).
Income tax for the six months was $1.51 billion (2023: $1.98 billion).
Net income for the six months amounted to $4.02 billion, a 30% decrease from the $5.72 billion reported in 2023. For the second quarter, net income was $3.00 billion (2023: $3.46 billion).
Net income attributable to shareholders for the six months amounted to $3.98 billion, a 29% decrease from the $5.60 billion reported in 2023. For the second quarter, net income attributable to shareholders was $2.97 billion (2023: $3.42 billion).
Consequently, Earnings Per Share for the six months amounted to $1.02 (2023: EPS: $1.43), while Earnings Per Share for the quarter totaled $0.76 (2023: EPS: $0.88). The twelve-month trailing EPS was $3.38, and the number of shares used in these calculations was 3,905,634,916.
Notably, SJ’s stock price closed the trading period on August 14, 2024, at a price of $40.00 with a corresponding P/E ratio of 11.85x.
Balance Sheet Highlights
The company’s assets totalled $569.31 billion (2023: $539.99 billion). This resulted from an 11% uptick in ‘Loans & leases, after allowance for credit losses’ closing at $133.14 billion.
Shareholder’s equity was $98.53 billion (2023: $91.64 billion), representing a book value per share of $25.23 (2023: $23.46).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.