Oct 2008 Financial News

Sagicor Financial Corporation - Financial Crisis and Listed Company Exposure

Oct 03, 2008

The following release was received from Sagicor Financial Corporation in response to a request for information on the exposure of listed companies, arising from the United States financial crisis made by the Jamaica Stock Exchange.

Our estimated exposure to institutions known to be in financial distress is US$9.4 million or 0.332% of total financial investments of approximately US$2.8 billion. Our estimate of projected losses and impairment of capital is US$5.7 million.

The actions we propose to take to abate and mitigate any expected losses in income or impaired capital arising from the exposure are as follows:

(i) We have already crystallized our loss in respect of one bank in the US and realized a loss of US$2.1 million.

(ii) We will continue to monitor our portfolios closely, and where we determine that assets are permanently impaired, we will act to avoid further loss by disposing of the investment. Where prospects for recovery are good, we will hold.

Given that our total exposure is less than 0.5% of total financial investments; our exposure to the financial crisis is not material.


Source:
The Trinidad and Tobago Stock Exchange Limited
Friday October 3, 2008