SJ reports 7% increase in year end Net Profits


Date: March 8, 2018

Sagicor Group Jamaica Limited (SJ), for the twelve months ended December 31, 2017, reported total revenues increased by 18% to $70.44 billion from $59.70 billion in 2016.Total revenue was broken down as follows;

Net premium revenue increased by 22% to a total of $41 billion compared to $33.49 billion last year. According to Management, “net premium Income of $41.00 billion, which accounts for 58% of revenue, was 22% up on 2016. Earned premiums for the Individual lines of business of $21.33 billion were higher by 11%, influenced by record new business in Jamaica and improved conservation of the inforce block.”

Net Investment Income increased to $21.43 billion from $19.35 billion in 2016, a 11% advance.

Fees and other revenue increased 17% to $8.02 billion from $6.86 billion in 2016.

Management also noted, “Group Insurance and annuity premiums of $20.25 billion were much higher as a result of very strong growth in the Annuities portfolio. Sagicor Bank’s revenue of $10.8 billion was 18% up on last year as the loans, cards and payments business expanded while Sagicor Investments’ revenue of $4.4 billion was 9% higher than last year. Group consolidated Investment income of $20.61 billion, before interest expense and capital gains, was 5% higher than in 2016.”

Benefits and Expenses totaled $56.59 billion for the period, an increase of 23% from $45.99 billion.  The growth was mainly driven by increase changes in insurance and annuity liabilities which grew by 123% to $10.68 billion from $4.78 billion. Administrative expenses for the year reflected a $2.29 billion increase to $16.61 billion compared the $14.33 billion in 2016. Provision for Credit Losses in 2017 amounted to $711.41 million. commission and related expenses rose 10% to close at $4.88 billion versus $4.43 billion a year earlier. Net insurance benefits incurred climbed 4% from $21.05 billion booked in 2016 to $21.91 billion for the 2017 financial year.

Share of loss from joint venture amounted to $9.71 million relative to a profit of $8.26 million a year earlier. Share of profit from associate for the period totaled $862.85 million compared to $495.05 million in 2016.

Share of loss from disposal of associate totaled $289.58 million compared to nil for the period ended December 31, 2016.

Investment and corporation taxes slightly decreased to $2.92 billion for the period (2016: $2.95 billion). Consequently, net profit amounted to $12.07 billion relative to $11.26 billion in 2016.

Earnings per share (EPS) for the year amounted to $3.09 (2016: $2.88), while for the quarter the EPS amounted to $0.77 . The number of shares used in our calculation is 3,905,634,918. SJ’s last traded price as at March 7, 2018 was $ 37.21.

Balance Sheet at a glance:

Total Assets increased by 3% or $11.08 billion to close at $352.04 billion as at December 31, 2017 from $340.95 billion the year prior. The movement was attributed to a $5.26 billion increase in ‘Loans & leases’, which closed at $61.43 billion (2016: $56.18 billion). ‘Cash reserve at Central Bank’ increased 38% to $11.42 billion (2016: $8.25 billion), while ‘Pledged assets’ totaled $81.61 billion (2016: $77.21 billion).

Equity attributable to stockholders of the company as at December 31, 2017 stood at $68.50 billion (2016: $56.41 billion) resulting in book value per share of $17.54 (2016: $14.44).


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