Jan 2015 Financial News

SFC - Redomicilation Notice

Jan 28, 2015

SAGICOR FINANCIAL CORPORATION PROPOSED RE-DOMICILIATION

Dear Shareholder:

You may be aware from recent media reports that the Board of Directors of Sagicor Financial Corporation (SFC), the non-operating holding company for the Sagicor Group, has approved a recommendation from the Management to prepare a plan to relocate its Registered Office from Barbados to another jurisdiction.

This recommendation follows recent rating action by Standard and Poor’s (S&P), to downgrade entities within the Sagicor Group. These downgrades were a direct result of S&P’s downgrade on the Sovereign Credit Rating of Barbados.

Why is Sagicor Financial Corporation Considering Re-domiciliation?

The Sagicor Group needs to restore its credit rating. Credit ratings are extremely important to financial services companies. Credit ratings have achieved wide investor acceptance as tools for differentiating credit quality. Investors use these ratings as a measurement to determine the financial status of companies. Although financially prudent, with strong capitalisation, improving operating performance and a strong competitive position, Sagicor Group’s ratings will continue to be impacted by changes in the rating of Barbados. Credit ratings of entities within the Sagicor Group are currently capped at the maximum two notches above the Barbados rating as long as it is domiciled in Barbados. Re-domiciliation of SFC will result in its Registered Office being relocated from Barbados to a country with an investment grade rating. This will permit Sagicor Group entities to attract a stronger rating, resulting in better access to capital to fund future growth and development, and greater access to strategic value-creating business opportunities; all of which should redound to the benefit of our stakeholders.

The country of re-domiciliation is yet to be determined, but consideration is being given to a number of locations, including, but not limited to, the U.S., Luxembourg, UK, Ireland and Trinidad & Tobago. A recommendation will be made only after a rigorous evaluation process is completed. There are several steps involved in this process, and subject to shareholder approval, we expect to have it completed by the end of 2015.

The Sagicor Group of Companies will continue to serve our customers as we have done for the past 174 years, and remains committed to its Barbadian community by way of social investment in the areas of health, education, youth development, sports and culture.

About Sagicor

Sagicor is a leading provider of financial services in the Caribbean. Operating in 22 countries, including the USA and Latin America, Sagicor has total assets in excess of US $5.9 billion, and over $754 million in capital. The Sagicor Group offers a wide range of products and services including life insurance, annuities and group and individual health, and has an insured base in the region of two (2) million. Sagicor is a widely-held publicly-traded company with over 37,000 Shareholders, and is listed on the stock exchanges of Barbados, Trinidad and Tobago and London.

On completion of the re-domicile evaluation process, we will engage our shareholders on the final recommendation, but should you have any further questions or comments, please contact us at info@sagicor.com.

Sincerely
Sagicor Financial Corporation

Dodridge D. Miller
President and Chief Executive Officer

Source:
The Trinidad and Tobago Stock Exchange Limited
Wednesday January 28, 2015