November 14, 2024
Sagicor Group Jamaica Limited (SJ) for the nine months ended September 30, 2024, reported a 15% increase in Insurance revenue totaling $39.63 billion compared to $34.38 billion in the corresponding period last year. Insurance revenue for the third quarter had a 14% increase to close at $14.00 billion compared to $12.28 billion for the comparable quarter of 2023.
Insurance service expenses amounted to $31.94 billion (2023: $26.72 billion), this represents an increase of 20% year over year. Consequently, insurance service result decreased by 10% to $4.59 billion compared to $5.11 billion for the nine months ended September 30, 2023. The company booked insurance service result of $1.76 billion for the third quarter versus $2.78 billion reported for the similar quarter of 2023.
Net Insurance Finance Expense increased by 40474% to close at $6.82 billion (2023: $16.81 million), while net investment income for the nine months ended September 30, 2024, amounted to $20.94 billion, a 35% increase relative to $15.46 billion reported in 2023. Consequently, Net Insurance and Investment Result for the nine months ended September 30, 2024, amounted to $18.71 billion, a 9% decrease relative to $20.55 billion reported in 2023. Net Insurance and Investment Result for the third quarter amounted to $6.29 billion (2023: $8.31 billion).
Other operating expenses totalled $22.71 billion a 18% increase from the corresponding period last year. (2023: $19.17 billion), while Fees and other Revenue increased by 12% from $12.55 billion in 2023 to $14.11 billion in the period under review. As a result, Profit before taxes for the nine months ended September 30, 2024, amounted to $9.28 billion, a 29% decrease relative to $13.11 billion reported in 2023. Profit before taxes for the third quarter amounted to $3.76 billion (2023: $5.41 billion).
Income taxes for the nine months ended September 30, 2024, had a 10% decrease to reach $2.61 billion (2023: $2.89 billion). As such, Net income for the nine months amounted to $6.68 billion, a 35% decrease from the $10.22 billion reported in 2023. For the third quarter, Net income was $2.66 billion (2023: $4.50 billion).
SJ noted, “Despite the difficult economic climate and several one-off expenses that have contributed to the decline in year-to-date profits, SGJ has remained focused on improving service levels for its customers while driving internal efficiencies. These strategies resulted in meaningful growth in the Group’s insurance revenues and net interest income over the prior year.”
Consequently, Earnings Per Share for the nine months amounted to $1.69 (2023: EPS: $2.58), while Earnings Per Share for the quarter totaled $0.67 (2023: EPS: $1.14). The twelve-month trailing EPS was $2.79 and the number of shares used in these calculations was 3,905,634,916.
Notably, SJ’s stock price closed the trading period on November 13, 2024, at a price of $39.11 with a corresponding P/E ratio of 13.99x.
Balance Sheet Highlights
The company’s assets totalled $591.40 billion (2023: $545.08 billion). The growth in total assets was primarily driven by increases to ‘Loans & leases’ and ‘Financial investments’ by $15.01 billion and $30.16 billion, respectively.
Total shareholder’s equity was $102.45 billion (2023: $93.55 billion), representing a book value per share of $26.23 (2024: $23.95).
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