August 14, 2023
For the six months ended June 30, 2023:
Sagicor Group Jamaica Limited (SJ) for the Six months ended June 30, 2023 reported a 15% increase in Insurance revenue totaling $22.10 billion compared to $19.19 billion in the corresponding period last year. Insurance revenue for the Second quarter had a 16% increase to close at $11.12 billion compared to $9.58 billion for the comparable quarter of 2022.
Insurance service expenses amounted to $18.24 billion (2022: 16.36 billion), this represents an increase of 11% year over year. Consequently, insurance service result increased by 35% to $2.33 billion compared to $1.73 billion for the Six months ended June 30, 2022. The company booked insurance service result of $1.06 billion for the Second quarter versus $707.64 million reported for the similar quarter of 2022.
Net Insurance Finance Expense closed at $2.20 billion (2022: Income $14.48 billion), while Unrealized capital gains/(losses) improved from a loss of $17.78 billion in 2022 to a gain of $1.01 billion in the period under review. Net interest income closed the six months period at $11.18 billion, up 5% from last year’s $10.65 billion.
Credit impairment losses for the period rose 148% to $462.19 million relative to $186.29 million for the same period in 2022. As a result, net investment income for the Six months ended June 30, 2023 amounted to $12.11 billion, a 281% improvement relative to the $6.69 billion loss reported in 2022. This was particularly due to the growth in interest earning assets.
Net Insurance and Investment result for the Six months ended June 30, 2023, amounted to $12.24 billion, a 29% increase relative to $9.52 billion reported in 2022. Net Insurance and Investment results for the Second quarter amounted to 6.42 billion (2022: $6.82 billion).
Fees and other revenue for the period climbed 4% to $8.91 billion (2022: $8.55 billion), while Other operating expenses totaled $12.55 billion an 8% increase from the corresponding period last year. (2022: $11.63 billion). Asset and other Taxes year to date amounted to $900.85 million, 2% above last year’s $883.09 million.
Results from Joint Venture dropped 99% to $2.55 million in contrast to $343.69 million twelve months earlier.
Profit before Taxes for the Six months ended June 30, 2023, amounted to $7.71 billion, a 31% increase relative to $5.90 billion reported in 2022. Profit before Taxes for the Second quarter amounted to 4.63 billion (2022: $5.04 billion).
Income taxes for the Six months ended June 30, 2023 had a 16% increase to reach $1.98 billion (2022: $2.35 billion). Net Income for the Six months amounted to $5.72 billion, a 61% increase from the $3.55 billion reported in 2022. For the Second quarter, Net Income was $3.46 billion (2022: $4.11 billion).
Net Profit attributable to Shareholders increased to $5.60 Billion (2022: $3.40 billion).
Consequently, Earnings Per Share for the Six months amounted to $1.43 (2022: EPS: $0.87), while Earnings Per Share for the quarter totaled $0.88 (2022: EPS: $1.07). The twelve-month trailing EPS was $4.76 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, 2023 at a price of $44.60 with a corresponding P/E ratio of 9.37x.
Balance Sheet Highlights
The company’s assets totaled $536.67 billion (2022: $509.94 billion). Notably, ‘Financial Investments’ increased by $16.81 billion to close at $333.41 billion, while ‘Loans & Leases after allowance for credit losses’ grew 25% to $119.75 billion (2022: $96.12), hence a 5% increase in the company’s total assets.
Shareholder’s equity was $89.55 billion (2022: $92.13 billion), representing a book value per share of $22.93 (2022: $23.59).
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