March 1, 2024
Sagicor Group Jamaica Limited (SJ) for the year ended December 31, 2023, reported a 15% increase in Insurance revenue totaling $46.82 billion compared to $40.67 billion in the corresponding period last year. Insurance revenue for the fourth quarter had a 7% increase to close at $12.44 billion compared to $11.63 billion for the comparable quarter of 2022.
Insurance service expenses amounted to $35.13 billion (2022: $30.55 billion), this represents an increase of 15% year over year. Consequently, insurance service result increased by 13% to $8.07 billion compared to $7.14 billion for the year ended December 31, 2022. The company booked insurance service result of $2.96 billion for the fourth quarter versus $4.59 billion in the prior comparable period.
Net investment income / (expense) for the year ended December 31, 2023 amounted to $26.45 billion, relative to $137.40 million reported in 2022.
Net Insurance and Investment Result for the year amounted to $29.05 billion, a 31% increase relative to $22.10 billion reported in 2022. Net Insurance and Investment Result for the fourth quarter amounted to $8.50 billion (2022: $14.76 billion).
Profit Before Taxes for the year ended December 31, 2023, amounted to $19.06 billion, a 29% increase relative to $14.74 billion reported in 2022. Profit Before Taxes for the fourth quarter amounted to $5.95 billion (2022: $11.88 billion).
Income taxes for the year had an 8% decline to reach $4.49 billion (2022: $4.90 billion). Net Income for the year amounted to $14.57 billion, a 48% increase from the $9.84 billion reported in 2022. For the fourth quarter, Net Income was $4.35 billion (2022: $10.08 billion).
Net profit attributable to shareholders for the year amounted to $14.37 billion, up 50% from 2022. Net profit attributable to shareholders for the quarter amounted to $4.30 billion, down 57% from the previous year.
SJ highlighted, “The prior year’s results were restated following the adoption of IFRS 17 and include an election to record the impact of changes in interest rates on the fair value of security prices, in the income statement.”
Consequently, Earnings Per Share for the year amounted to $3.68 (2022: EPS: $2.45), while Earnings Per Share for the quarter totaled $1.10 (2022: EPS: $2.59). The number of shares used in these calculations was 3,905,634,916.
Notably, SJ’s stock price closed the trading period on March 1, 2024, at a price of $41.03 with a corresponding P/E ratio of 11.15x.
Balance Sheet Highlights
The company’s assets totalled $560.65 billion (2022: $515.78 billion). The growth resulted from an 8% increase in ‘Financial investments’ closing at $243.79 billion.
Shareholder’s equity was $99.78 billion (2022: $83.61 billion), representing a book value per share of $25.55 (2022: $21.41).
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