SJ’s reports a 7% increase in six months Total Revenue

Date: August 15, 2018

Sagicor Group Jamaica Limited (SJ), for the six months ended June 30, 2018, Total Revenues increased by 7% to $32.02 billion from $30.01 billion in 2017, while for the second quarter Total Revenues improved 8% to total $16.20 billion compared to $14.93 billion in 2017.

Total revenue year to date was broken down as follows;
• Net premium revenue increased by 6% to a total of $18.45 billion compared to $17.41 billion last year.
• Net Investment Income declined to $7.83 billion from $8.64 billion in 2017, an 9% decline.
• Fees and other revenue went up 44% to $5.74 billion from $3.97 billion in 2017.

Benefits and Expenses totaled $25.63 billion for the period, inching up by 10% from $23.26 billion, while for the second quarter Benefits and Expenses were up 20% to close at $13.09 billion relative to $10.95 billion in 2017. Of this Benefits and Expenses:

• Net insurance benefits incurred increased by 20% to close at $12.70 billion (2017: $10.54 billion).
• Changes in insurance and annuity liabilities rose by 21% to total $564.30 million relative to $465.34 million in 2017.
• Administration Expenses fell from $8.93 billion in 2017 to $8.77 billion in 2017.
• Commission and related expenses grew by 10% to $2.62 billion from $2.38 billion.
• Amortization of intangible assets and Asset tax both advanced to $342.92 million ($331.13 million) and $637.69 million (2017: $616.33 million) respectively.

Share of profit from joint venture amounted to $15.57 million relative to $16.53 million a year prior. Share of profit from associate for the period totaled $223.20 million compared to $233.13 million last year. As such, Profit before Taxation amounted to $6.63 billion, a 5% reduction when compared to the $7.01 billion booked in 2017.

Investment and corporation taxes of $1.35 billion was reported for the period, a marginal decline of 0.2% which translated into a net profit of $5.28 billion (2016:$ 5.65 billion) for the six months period. In addition, profit for the quarter amounted to $2.64 billion relative to $3.06 billion in 2017.

Earnings per share (EPS) for the quarter amounted to $0.676 (2017:$ 0.783), while EPS for the period totaled $1.35 relative $1.45 in 2017. The twelve month trailing EPS amounted to $2.99. The number of shares used in our calculations amounted to 3,905,634,918 units. SJ’s stock last traded on August 14, 2018 at $37.67.

Balance Sheet at a glance:

Total Assets increased by 10% or $33.22 billion to close at $373.43 billion as at June 30, 2018 from $340.21 billion the year prior. This increase was mainly driven by the increase by Pledged Assets which went up to $73.88 billion (2017:$8.11 billion). However this was tempered by the reduction in the company’s Financial investments which declined by 26% or $54.42 billion to end the period at $158.94 billion.

Equity attributable to stockholders of the company as at June 30, 2018 stood at $68.81 billion (2017: $59.82 billion) resulting in book value per share of $17.62 (2017: $15.32).

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