Aug 2008 Financial News

Sagicor: improvements in first part of the year

Aug 19, 2008

Sagicors performance for the first half of 2008 has been very good. So says Mr. Terrence Martins, Chairman of Sagicor Group of Companies. This performance is in the face of rapid increases in the price of oil and food impacting negatively on the prospects for economic growth in many countries.

"While Sagicor to date has experienced no major downside as a result of these developments, we remain watchful and will continue to manage carefully the Groups affairs and pursue prudently available business opportunities," stated Martins.

For the first six months of 2008, Sagicor recorded overall net income of US $45.4 million.The net income attributable to shareholders totalled US $ 33.3 million.

When compared to the corresponding period for 2007, there were percentage improvements of 25 per cent and 31 per cent respectively for the Group and for shareholders.

Net premium revenue for the six months of this year totalled US $285.8 million, an increase of 48 per cent over the amount recorded in the first half of 2007. Net investments and other income for the period under review was US $171.3 million, an increase of 17 per cent over the corresponding period in 2007.

Net benefits recorded were US $242.2 million for the first six month period 2008, an increase of 33 per cent when compared with the same period in 2007. Expenses have also increased over the first half of 2007, increasing by some 45 per cent to US $164.5 million.

The inclusion in the current period of the Sagicor at Lloyd's business, which was acquired from September 1, 2007, has contributed significantly to the growth recorded in net premium revenue, net benefits and expenses, when compared to prior periods.

The Directors have decided on an interim dividend of US 3 cent per share in respect of the half year. The total dividend will amount to US 48.3 million and represents a payout ratio of 25 per cent of earnings.


Source:
Deborah Hoyte
Barbados Advocate
Tuesday Aug 19 2008

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