SJ's reports a 35% increase in six months net profits

Market News

July 30, 2019

SJ’s reports a 35% increase in six months net profits

Date: July 30, 2019

Sagicor Group Jamaica Limited (SJ) for the six months ended June 30, 2019, Total Revenues increased by 33% to $42.59 billion from $32.02 billion in 2018, while for the second quarter Total Revenues improved 39% to total $22.47 billion compared to $16.20 billion in 2017. Total revenue year to date was broken down as follows;

- Net premium revenue increased by 14% to a total of $21.07 billion compared to $18.45 billion last year.
- Net Investment Income increased to $11.91 billion from $7.83 billion in 2018, a 52% increase.
- Fees and other revenue went up 19% to $6.81 billion from $5.74 billion in 2017.
- Hotel revenue close the period at $2.80 billion relative to nil in 2018.

Benefits and Expenses totaled $34.20 billion for the period, increasing by 33% from $25.63 billion, while for the second quarter Benefits and Expenses were up 36% to close at $17.75 billion relative to $13.09 billion in 2018. Of this Benefits and Expenses:

- Net insurance benefits incurred increased by 3% to close at $13.13 billion (2017: $12.70 billion).
- Changes in insurance and annuity liabilities rose by 793% to total $5.04 billion relative to $564.30 million in 2018.
- Administration Expenses increased from $8.77 billion in 2018 to $10.08 billion in 2018.
- Commission and related expenses grew by 10% to $2.87 billion from $2.62 billion.
- Amortization of intangible assets and Asset tax both advanced to $376.78 million ($342.92 million) and $641.61 million (2018: $637.69 million) respectively.

Share of loss from joint venture amounted to $12.09 million relative to a profit of $15.57 million a year prior. Share of profit from associate for the period totaled $909.81 million compared to $223.20 million last year. As such, Profit before Taxation amounted to $9.29 billion, a 40% increase when compared to the $6.63 billion booked in 2018.

Investment and corporation taxes of $2.16 billion was reported for the period, an increase of 60% which translated into a net profit of $7.13 billion (2016:$ 5.28 billion) for the six months period. In addition, profit for the quarter amounted to $3.63 billion relative to $2.64 billion in 2018. Net profit attributable to shareholders for the period amounted to $6.39 billion relative to $5.28 billion for the corresponding period in 2018.”

Earnings per share (EPS) for the quarter amounted to $0.945 (2018: $0.676), while EPS for the period totaled $1.64 relative $1.35 in 2018. The twelve month trailing EPS amounted to $3.93 The number of shares used in our calculations amounted to 3,905,634,918 units. SJ’s stock last traded on July 30, 2019 at $58.52.

Balance Sheet at a glance:

Total Assets increased by 14% or $51.55 billion to close at $424.98 billion as at June 30, 2019 from $373.43 billion the year prior. This increase was mainly driven by the increase by ‘Financial Investments’ which went up to $185.47 billion (2018:$158.94 billion). Also, ‘Investment in associated company’ increased 250% to end the period at $26.09 billion (2018: $7.46 billion).

Equity attributable to stockholders of the company as at June 30, 2019 stood at $82.80 billion (2018: $68.81 billion) resulting in book value per share of $28.54 (2018: $17.62).

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