Apr 2011 Financial News

Sagicor’s 2010 net income declines by 52.5 per cent

Apr 06, 2011

Sagicor Financial Corporation yesterday reported net income of US$41.6 million for the year ended December 31, 2010—a decline of 52.5 per cent when compared with the US$87.6 million that the financial services company earned in 2009. The Sagicor group, one of the largest indigenous insurance and investment companies in the region, experienced a 4.2 per cent increase in its total revenue, which amounted to US$1.2 billion in 2010. The group paid out US$769.7 million in total benefits for 2010—an 8.6 per cent over 2009. Sagicor also reported a ten per cent increase in its total expenses, which amounted to US$429.4 million.

The higher benefits and increased expenses contributed to Sagicor declaring a profit before tax of US$56.9 million in 2010, which was 47 per cent lower than in 2009. Although Sagicor’s European segment generated US$345.2 million in net premium revenue in 2010, the most of the company’s segments, Sagicor Europe declared a net loss of US$13.1 million. The company issued its 2010 accounts two working days after its March 31, 2010 deadline. The company provided no explanation for the late results. The 2010 financial results also excluded a chairman’s report, unlike the presentation of the 2009 financial results in which the report of Sagicor chairman Stephen McNamara was over 1,500 words long.

Officials of the group last week signed an agreement that will result in the International Finance Corporation investing up to US$100 million in Sagicor. The IFC will invest up to US$20 million in ordinary shares, giving the member of World Bank group a 4 per cent stake in Sagicor. The IFC will invest up to US$80 million in convertible and redeemable preference shares. The investment by the IFC is subject to regulatory and shareholder approval. McNamara was quoted in last week’s press statement as saying that the IFC had agreed with Sagicor that “our existing shareholders should be afforded the prior opportunity to invest in the company as part of this transaction.” Sagicor declined by $0.50 or six per cent to close at $8 on the local stock exchange yesterday. Sagicor is holding a video conference to present its group financial results on Friday. The video conference will be hosted in Barbados by Dodridge Miller, Sagicor’s group president and CEO.


Source:
Trinidad Guardian
Wednesday April 6, 2011

http://guardian.co.tt/business/2011/04/06/sagicor-s-2010-net-income-declines-525-cent