March 4, 2022
Sagicor Group Jamaica (SJ), for the year ended December 31, 2021, reported a 21% increase in total revenues to $102.56 billion from $84.57 billion in 2020, while for the fourth quarter total revenues rose 21% to total $29.42 billion compared to $24.33 billion in 2020. Total revenue for the year end was broken down as follows:
- Net premium revenue increased by 5% to a total of $52.78 billion compared to $50.38 billion last year. According to management, “This was largely due to strong new business sales in both the Individual Life and Employee Benefits segments.”
- Net investment income rose to $19.24 billion from $18.12 billion in 2020, a 6% increase.
- Fees and other revenue increased 29% to $17.40 billion from $13.51 billion in 2020.
- Hotel revenue increased by 82% to $4.42 billion from $2.43 billion in 2020.
Management noted, “The Individual Life segment continued to report strong new business sales and portfolio growth. The commercial and investment banking segments benefitted from improvements in commercial activity as a result of economic growth.” “The Individual Life segment continued to report strong new business sales and portfolio growth. The commercial and investment banking segments benefitted from improvements in commercial activity as a result of economic growth.”
Benefits and expenses totalled $78.23 billion for the period, an increase of 24% from $63.11 billion, while for the fourth quarter benefits and expenses rose 19% to close at $22.23 billion relative to $18.67 billion in 2020. Of this:
- Commission and related expenses increased by 9% to $7.56 billion from $6.92 billion in 2020.
- Administration expenses increased by 12% to $24.42 billion (2020: $21.79 billion).
- Net movement in actuarial liabilities moved to a loss of $4.28 billion in 2021 from a gain of $4.06 billion for the year ended December 31, 2020.
- Net insurance benefits incurred amounted to $35.05 billion versus $32.75 billion that was recorded last year.
- Other taxes and levies totalled $830.77 million, a 11% increase relative to $746.83 million recorded in the prior year.
- Depreciation and Amortization amounted to $2.72 billion (2020: $2.87 billion)
- Hotel Expenses climbed by 61% to $3.37 billion from the $2.09 billion recorded in 2020.
Share of profit from joint venture amounted to $607.76 million relative to a share of profit of $310.86 million booked a year earlier. Share of loss from associate for the period totalled nil compared to a loss of $5.47 billion last year. There was no impairment loss of investment in associate in 2021 relative to a loss of $4.51 billion in 2020. Impairment of goodwill amounted to $614.400 million from $1.23 billion in 2020. Loss on dilution of interest in associate totalled $233.09 million from a loss of $391.30 million in 2020.
As such, Profit before Taxation amounted to $24.09 billion, a 137% increase when compared to the $10.18 billion booked in 2020.
Investment and corporation taxes of $6.45 billion was reported for the period (2020: $5.69 billion), as such net profit for the year totalled $17.64 billion (2020: $4.84 billion), a 293% increase. Gain for the quarter amounted to $4.09 billion relative to net loss of $518 million in 2020.
Net profit attributable to shareholders for the period amounted to $17.40 billion relative to $13.78 billion the prior year’s period. As per the audited results, non- controlling interest for the year ended December 31, 2021 amounted to a gain of $247,657 compared to a loss of $9.30 billion as at December 31, 2020. For the quarter, net profit attributable to shareholders increased 27% to $4.37 billion (2020: $3.45 billion).
Total comprehensive income for the period under review closed at $13.15 billion (2020: $9.41 billion). Total comprehensive income for the quarter amounted to $2.53 billion (2020: $2.88 billion)
Earnings per share for the quarter amounted to $1.12 (2020: $0.88), while EPS for the period totalled $4.45 relative an EPS of $3.53 in 2020. The total number of shares used in the calculations amounted to 3,905,634,918 units. SJ’s stock last traded on March 4, 2021 at $55.83 with a corresponding P/E of 12.53 times.
Balance Sheet at a glance:
Total Assets increased by 8% or $37.30 billion to close at $527.99 billion as at December 31, 2021 from $490.69 billion the year prior. The movement was mainly attributable to a $28.34 billion increase in ‘Financial investments’ which closed at $238.75 billion (2020: $210.40 billion). Management noted, “This was largely due to strong new business sales in both the Individual Life and Employee Benefits segments. Growth in the Group’s interest earning asset base contributed to a 6% increase in net investment income from $18.12 billion in 2020 to $19.24 billion in the current year.”
Equity attributable to stockholders of the company as at December 31, 2021 stood at $114.82 billion (2020: $106.38 billion) resulting in book value per share of $29.40 (2020: $27.24).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein