Nov 2011 Financial News

Sagicor gives nine-month report

Nov 15, 2011

SAGICOR Financial Corporation (SFC) has announced Group revenue of more than US$1 billion (Bds$2 billion) for the nine months to September this year.

However, this comes against the backdrop of the financial services firm recording lower net income with catastrophes in Japan, Australia and New Zealand contributing to the dip in profitability.

“These particular events caused a net loss at the Sagicor at Lloyd’s segment,” said Chairman Stephen McNamara.

Reviewing the group’s nine-month results, McNamara said that overall, Group revenue for the period surpassed the billion dollar threshold to reach US$1 024.8 million, an increase of 13 per cent over that for 2010.

“This was distributed 59 per cent for the Caribbean operations (2010 - 60 per cent), 30 per cent for the Sagicor at Lloyd’s segment (2010 - 28 per cent)and 11 per cent for the USA segment (2010 - 12 per cent,” said the Sagicor Chairman.

Net income of US$20.3 million was recorded for the review period, compared to a net income of US$33.4 million for the corresponding period in 2010.

Net income attributable to common shareholders was US$0.9 million (2010 - US$15.7 million).

The Chairman said that the results have been largely driven by the exceptional losses at Lloyd’s.

In response to this challenge, McNamara further revealed, management is implementing the decision to exit two unprofitable insurance lines. According to him, “the 2012 underwriting plan for Sagicor at Lloyd’s in now in its final stages and we anticipate a return to profitability in 2012 for this segment.”

Japan was affected by an earthquake and a tsunami, while severe flooding took place in Australia and New Zealand was hit by an earthquake.

The Sagicor Chairman also revealed that forecast growth in the US economy has been reduced from three per cent to 1.6 per cent, while turmoil continues to affect the Eurozone economies. (JB)


Source:
Barbados Advocate
Tuesday November 15, 2011

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=20931