November 13, 2023
Sagicor Group Jamaica Limited (SJ) for the nine months ended September 30, 2023, reported a 18% increase in Insurance revenue totaling $34.38 billion compared to $29.05 billion in the corresponding period last year. Insurance revenue for the third quarter had a 25% increase to close at $12.28 billion compared to $9.85 billion for the comparable quarter of 2022.
Insurance service expenses amounted to $26.72 billion (2022: $24.53 billion), this represents an increase of 9% year over year. Consequently, insurance service result increased by 101% to $5.11 billion compared to $2.55 billion for the nine months ended September 30, 2022. The company booked insurance service result of $2.78 billion for the third quarter versus $820.26 million reported for the similar quarter of 2022.
Net Insurance Finance Expense closed at $16.81 million (2022: Income of $12.36 billion), while Unrealized capital losses moved from $24.10 billion in 2022 to $2.33 billion in the period under review. As a result, net investment income for the nine months amounted to $15.46 billion, relative to net investment expense of $7.56 billion reported in 2022.
Net Insurance and Investment Result for the nine months amounted to $20.55 billion, a 180% increase relative to $7.34 billion reported in 2022. Net Insurance and Investment Result for the third quarter amounted to $8.31 billion (2022: loss of $2.18 billion). Other operating expenses totalled $19.17 billion, a 12% increase from the corresponding period last year (2022: $17.16 billion).
SJ highlighted, “The Group’s insurance sales continue to show growth along most of its product lines, particularly within its corporate client portfolios during the current quarter. The Commercial Banking segment saw an expansion in its loan and card payment portfolios, contributing to the Group’s improved year over year results. The Investment Banking business continues to face challenges with unfavourable capital market conditions and declining net interest income due to elevated liability costs.”
Profit Before Taxes for the nine months amounted to $13.11 billion, a 358% increase relative to $2.86 billion reported in 2022. Profit Before Taxes for the third quarter amounted to $5.41 billion (2022: loss of $3.04 billion).
Income taxes for the nine months amounted to $2.89 billion (2022: $3.10 billion). Net Income for the nine months amounted to $10.22 billion, versus net loss of $238.66 million reported in 2022. For the third quarter, Net Income was $4.50 billion (2022: Net Loss of $3.79 billion).
Shareholders’ profit for the nine-month amounted to $10.07 billion relative to a shareholders’ loss of $526.45 million in 2022. Shareholders’ profit for the third quarter valued $4.46 billion compared to a loss of $3.92 billion in the prior year’s quarter.
Consequently, Earnings Per Share for the nine months amounted to $2.58 (2022: LPS of $0.13), while Earnings Per Share for the quarter totaled $1.14 (2022: LPS of $1.00). The twelve-month trailing EPS was $6.91, 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 10, 2023, at a price of $42.03 with a corresponding P/E ratio of 6.09x.
Balance Sheet Highlights
The company’s assets totalled $541.66 billion (2022: $499.96 billion). The increase was mainly due to a 26% increase in Loans & leases, after allowance for credit losses closing at $121.56 billion.
Shareholder’s equity was $89.15 billion (2022: $71.01 billion), representing a book value per share of $22.83 (2022: $18.18).
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