March 15, 2021

Sagicor Group Jamaica (SJ), for the year ended December 31, 2020 reported a 9% decrease in total revenues to $84.57 billion from $92.60 billion in 2019, while for the fourth quarter total revenues declined 3% to total $24.33 billion compared to $25.09 billion in 2019. Total revenue for the year end was broken down as follows:

• • Net premium revenue increased by 8% to a total of $50.38 billion compared to $46.51 billion last year.
  • Net investment income fell to $18.25 billion from $26.91 billion in 2019, a 32% decrease.
  • Fees and other revenue decreased 3% to $13.51 billion from $13.90 billion in 2019, “primarily from the slowing of consumer activity and the decline in corporate financing deals closed during the period,” as per SJ.
  • Hotel revenue decreased by 54% to $2.43 billion from $5.27 billion in 2019.

Benefits and expenses totalled $63.11 billion for the period, a decline of 12% from $71.80 billion, while for the fourth quarter benefits and expenses rose 3% to close at $18.66 billion relative to $18.14 billion in 2019. Of this:

• •  Commission and related expenses increased by 14% to $6.92 billion from $6.09 billion in 2019.
  •  Administration expenses increased by 8% to $21.79 billion (2019: $20.16 billion).
  • Net movement in actuarial liabilities moved to a gain of $4.06 billion in 2020 from a loss of $8.95 billion for the year ended December 31, 2019.
  •  Net insurance benefits incurred amounted to $32.75 billion versus $29.11 billion that was recorded last year.
  •  Other taxes and levies totalled $746.83 million, a 16% increase relative to $643.54 million recorded in the prior year.
  •  Depreciation and Amortization amounted to $2.87 billion (2019: $2.71 billion)
  •  Hotel Expenses fell by 50% to $2.09 billion from the $4.14 billion recorded in 2019.

Share of profit from joint venture amounted to $310.86 million relative to a share of profit of $14.62 million booked a year earlier. Share of loss from associate for the period totalled $5.47 billion compared to a loss of $98.66 million last year. The Company reported Impairment loss in associate, Impairment loss in goodwill, Loss on dilution of interest in associate which amounted to $4.51 billion, $1.23 billion, and $391.30 million, respectively in 2020 versus nil in 2019. Management noted that, “The Group recognized impairment charges of $5.74 billion, resulting from the lower valuations of our investments in hotel operations, a direct result of the uncertainty surrounding the expected impact of travel restrictions caused by COVID-19.”

As such, Profit before Taxation amounted to $10.18 billion, a 51% decrease when compared to the $20.72 billion booked in 2019.

Investment and corporation taxes of $5.69 billion was reported for the period (2019: $5.25 billion), as such net profit for the year totalled $4.48 billion (2019: $15.46 billion), a 71% decrease. Loss for the quarter amounted to $518 million relative to net profit of $4.16 billion in 2019.

Net profit attributable to shareholders for the period amounted to $13.78 billion relative to $15.65 billion the prior year’s period. As per the audited results, non- controlling interest as at December 31, 2020 amounted to a loss of $9.30 billion compared to a loss of $186.68 million as at December 31, 2019. For the quarter, net profit attributable to shareholders reduced 28% to $3.45 billion (2019: $4.79 billion).

Total comprehensive income for the period under review closed at $9.41 billion (2019: $22.79 billion). Total comprehensive income for the quarter amounted to $2.88 billion (2019: $3.46 billion)

Earnings per share for the quarter amounted to $0.88 (2019: $1.23), while EPS for the period totalled $3.53 relative an EPS of $4.01 in 2019. The total number of shares used in the calculations amounted to 3,905,634,918 units. SJ’s stock last traded on March 12, 2021 at $47.68 with a corresponding P/E of 13.51 times.

Balance Sheet at a glance:

Total Assets increased by 7% or $30.70 billion to close at $490.69 billion as at December 31, 2020 from $460 billion the year prior. The movement was mainly attributable to a $25.01 billion increase in ‘Financial investments’ which closed at $213.72 billion (2019: $188.71 billion).

Equity attributable to stockholders of the company as at December 31, 2020 stood at $106.38 billion (2019: $91.25 billion) resulting in book value per share of $27.24 (2019: $23.36).

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