May 2013 Financial News

Sagicor Group records modest increase in income

May 03, 2013

The Sagicor Group recorded a net income of US$74.1 million for the year ended December 31, 2012, according to financial statements published yesterday. Chairman Stephen McNamara said this was “a modest reduction from US$75.7 million achieved for the previous year”.

He added: “Net income from continuing operations attributable to shareholders improved to US$52.4 million from the corresponding amount of US$44.8 million for 2011. Earnings per common share from continuing operations totalled US16.8¢ and represents a return on common shareholders’ equity of 9.5 per cent. These results are very encouraging and provide shareholders with a reasonable level of return.”

McNamara said Sagicor’s financial statements for 2012 were presented with continuing operations being separated from the discontinued Sagicor Europe operations. “In December 2012, the board and management made the determination that the Sagicor Europe operations, comprising our Sagicor at Lloyd’s insurance business, would be divested and the group would realise its value through a sale of the business.

“In accordance with International Financial Reporting Standards, the assets and liabilities associated with the Sagicor Europe are presented separately in the statement of financial position, and the revenues, benefits, expenses and cash flows are also separated in the financial statements with the 2011 comparative amounts presented likewise,” he explained

The financial statements show that Sagicor’s revenue from continuing operations totalled US$1,064.4 million and increased from US$944.5 million in 2011—an increase of 13 per cent—which was attributed increased net premiums of US$60.5 million, increased investment income of US$ 17.5 million and increased other revenue of US$ 42.0 million.

Total benefits from continuing operations totalled US$639.4 million compared to US$541.8 million the previous year. This resulted from an increase of US$38.1 million in policy benefits, as well as an increase in future policy benefits of US$62.0 million. McNamara said: “The increase in future benefits has been impacted by the reducing yields on investment income in 2012 compared to 2011 as future benefits have to be set aside now to offset lower expected investment income in the future.”

The insurance group’s total expenses from continuing operations amounted to US$326.5 million, an increase of US$21.3 million or seven per cent over the previous year.


Source:
Trinidad Guardian
Friday May 3, 2013

http://www.guardian.co.tt/business/2013-05-02/sagicor-group-records-modest-increase-income