Sagicor’s Q1 earnings dip linked to one-time factors Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Sagicor Group Jamaica Limited saw its first quarter profit dip due to a one-time adjustment and unrealised mark-to-market losses on a segment of its life insurance investment portfolio. Despite this, the company achieved robust double-digit growth in insurance revenue from new business.

The commercial and investment Banking segments also performed well, primarily driven by higher fee income and other revenues during the three months ending March 31, 2024.

A statement from the group indicated that it recorded “a net profit attributable to stockholders of $1 billion, representing a decrease from the comparative period’s profit of $2.18 billion.”

“Excluding the one-time adjustment and unrealised mark-to-market losses, the net profit attributable to stockholders for the period would have been approximately $2.32 billion,” the statement continued.

Chris Zacca, President and CEO, expressed optimism about the company’s performance for the rest of year, amidst the tough economic climate and market conditions.

“Our focus remains on executing our long-term strategy, delivering value to customers and shareholders. We will persist in adapting, innovating, and leveraging our strengths to overcome challenges and seize opportunities.” 

He further added that “While we were impacted by one-off factors in Q1, our strong insurance revenue, commercial and investment banking performance, highlight the resilience of our Group’s diversified portfolio. The company remains committed to its mission of providing solutions that empower individuals and businesses to achieve their goals, even in the most challenging times.”

Sagicor’s insurance revenue grew by $1.53 billion, representing a 14 per cent increase year-over-year, reflecting the effectiveness of the company’s sales strategies and the trust of customers in its offerings. Both long-term and short-term insurance linesexperienced strong new business sales.

Depsite a slower pace of deposit growth across financial institutions, our strategic initiatives resulted in a five per cent year-over-year increase in deposits during the first quarter, indicating strong consumer confidence levels.

The commercial banking segment demonstrated robust expansion in its loan and card payment portfolios. Growth in transaction volumes on its card payments portfolios led the segment to record a 15 per cent increase in revenues year-over-year.  Additionally, the loan portfolio experienced a $510 million, or roughly an 18 per cent, increase in interest income during the comparative period.

Meanwhile, the Investment banking business also saw a marked improvement in its interest margins, despite the continuing challenges with the current capital market conditions.Notably, Net Investment Income recorded $810 million, a 106 per cent increase over the prior year.

In March, the company released its 2023 year-end earnings report, which recorded a $14 billion profit. Sagicor Group Jamaica operates the largest insurance business in Jamaica and is now a $560-billion business in terms of assets.