Nov 2010 Financial News

Sagicor equity grows

Nov 16, 2010

DESPITE persistent economic challenges, the Sagicor Group of Companies said it was able to grow shareholders’ equity by seven per cent to US$576.8 million during the half year to September 2010.

In stating this, Chairman Stephen McNamara said book value per share was up seven per cent as well, to US$1.98 when compared to the corresponding period in 2009.

Sagicor, a leading financial services firm has like a number of other private sectior entities, been affected by the global economic meltdown which has had a severe impact on the Caribbean and other markets where the company does business.

“The Group recorded net income of US$33.4 million and total comprehensive income of US$85.4 million for the nine months ended September 30, 2010,” said the Chairman.
“Net income attributable to shareholders was US$15.7 million and the corresponding total comprehensive income to shareholders was US$50.6 million,” he said.

Net income for the corresponding period was US$64.0 million.

The Chairman said that the overall performance of the Group was not as strong as for the same period a year ago.

McNamara attributed this partly to what he stated were the catastrophic claims experienced by Sagicor’s UK operations during the review period, favourable actuarial liability adjustments in Sagicor Jamaica and Sagicor USA in 2009 that did not recur in the current period.

“However, total comprehensive income for the period strong at US$85.4 million, slightly behind the performance for 2009,” the Chairman stated.

He said too that after taking into account shareholders’ total comprehensive income of US$50.6 million less shareholder dividends declared of US$11.6 million, the total shareholders’ equity increased by US$39.8 million over the nine month period.

Consequently, book value per share grew by US 13 cents to $1.98 as of September 30, 2010.

McNamara said that the global financial and economic environment continues to be challenging. According to him, “Some considerable uncertainty remains as to the resumption of sustainable economic growth in our markets located in the Caribbean region, the USA and the UK.”

He informed that despite the recent downgrade of Sagicor Life by S&P to BBB in line with the Barbados sovereign, “We remain committed to the markets in which we operate.” (JB)


Source:
Barbados Advocate
Tuesday November 16, 2010

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=14041