May 2012 Financial News

Sagicor chairman upbeat about financial year

May 21, 2012

CHAIRMAN Stephen McNamara, was upbeat that come 2012 Sagicor Financial Corporation would turn around its operations.

The first quarter of the company’s new financial year is showing signs of the improvement, thanks to, among other things, a better performance by Sagicor at Lloyd’s which had previously chalked up losses on account of claims in respect of some natural disasters.

During the period ended March 2012, Sagicor recorded net income of Bds$33.2 million compared to Bds$22.2 million during the corresponding quarter of 2011.

Net income attributable to shareholders was Bds$18.4 million, compared to a loss of Bds$37.0 million a year earlier. “This satisfactory result represents a significant improvement over the equivalent period last year when the Sagicor at Lloyd’s operating segment incurred a large incidence of insurance claims arising from extraordinary natural catastrophes,” said McNamara.

According to him, “Sagicor at Lloyd’s achieved net income of Bds$3.0 million during the quarter under review, compared to a loss of Bds$65.8 million in the first quarter of 2011.”

“The Group’s results for the first quarter of 2012 have produced a welcome return to profits attributable to shareholders,” he further reported.

The Chairman said that in accordance with their strategy to control exposure to property and casualty business written in the Lloyd’s market, revenue for the period declined by Bds$36.2 million to Bds$655.6 million. Also contributing to this trend was a reduction in the level of annuity business written in the USA.

Total benefits incurred during the quarter under review were Bds$381.8 million, a decrease of Bds$105.4 million. McNamara attributed the decrease to two main factors, the extraordinary catastrophe claims included in the 2011 figures and the reduction in premium revenue generated in 2012.

He said that expenses in the quarter were within expectations.

Looking ahead, the Chairman noted that the Group’s performance is impacted by the prevailing economic environment in North America, Europe and the Caribbean.

“Notwithstanding these challenges in the external environment, the Board and Management of Sagicor remained focus on effectively managing the Group’s affairs and on enhancing shareholder value,” he added.


Source:
Barbados Advocate
Monday May 21, 2012

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=24814