Sagicor's $13.8b profit makes it second most profitable listed company
Sagicor Group Jamaica has moved to the second position in terms of net profits, up from third among all listed companies on the Jamaica Stock Exchange.
President and CEO Christopher Zacca, announced the achievement earlier this week, noting that “the year filled with great opportunities for significant business growth, despite some challenges.”
For the year ending December 2018, the company earned $13.9 billion in a 15 per cent increase, year-on-year, due in part to a 1.3 per cent increase in revenues to $70.65 billion.
The performance, put Sagicor ahead of Scotia Group Jamaica’s $12.8 billion in net profit, to move into second place behind NCB, which earned $28 billion last year.
Sagicor’s individual insurance segment continued its strong profitability performance contributing $4.76 billion to the group for the year.
“Our core business – Sagicor Life – continues to be the market leader in individual life insurance, group health and life insurance, pension fund management, and it remains the most profitable subsidiary in the group,” Zacca said.
Sagicor Group Jamaica President and CEO Christopher Zacca
Net premium income for the Individual Insurance lines of business of $23.92 billion was 13 per cent higher than the comparative 2017 period, driven by strong new business in Jamaica, where new annualized premium income was 15 per cent ahead of last year and improved conservation of the in-force block of policies resulted in a seven per cent growth.
Zacca added: “2018 was a record year for sales in insurance, both life and health, and our policy conservation was excellent. Our market share in both Life and Health insurance is over 60 per cent.”
Sagicor’s commercial banking arm also increased earnings, reporting net profits of $2.85 billion for the year, significantly more than the amount recorded in 2017.
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These profits were produced from revenues of $12.40 billion which were 14 per cent more than the prior year, reflecting business expansion, realized capital gains and improved credit losses. Fee-based income was 15 per cent more than in 2017 the company grew its payments channels.
Meanwhile, Sagicor Investments generated a net profit of $2.03 billion, level with the prior year. Strong growth in fee-based income was offset by lower interest rates in Jamaica and losses on certain bonds.
Also during the year, Sagicor concluded a business combination deal with the Playa Hotels in June, took full control of the Sagicor Real Estate X-Fund Limited in October, and established a 51 per cent stake in micro-finance business Travel Cash.
Zacca said for 2019, the group is focused on driving our technological innovations and improving our digital platforms to provide ‘easy, simple and personal” solutions.