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Sagicor Financial net income $39 million

Staff writer |
Sagicor Financial Corporation recorded net income of $39 million for the nine months to September 30, 2014, compared to a loss of $1.9 million for the same period of 2013.

The Group's continuing operations recorded net income of $39.6 million for 2014, compared to $39.3 million for the corresponding period in 2013.

Net income from continuing operations attributable to shareholders was $22.4 million, compared to the prior year result of $23.8 million. Earnings per common share from continuing operations was US 7.2 cents, and represented an annualised return on common shareholders' equity of 6%.

Continuing operations comprising our businesses in the Caribbean and in the USA closed the period with total revenue amounting to $751.4 million, and was $39.2 million below the corresponding period in 2013. Net premium revenue stood at $457.2 million, compared to $506.1 for the same period in the prior year.

The lower premium income resulted from a decision to reinsure a significant portion of new annuity business in our USA segment, together with the fact that single premium annuity business was higher in 2013, when compared to 2014. Net investment income and other income closed the period at $294.2 million, and was an improvement over the prior year amount of $284.5 million.

Total benefits amounted to $423.5 million for the period and this fell below the comparative amount for the previous year by $56.2 million. This reduction in benefits is as a result of the lower single premium annuity business written in 2014 when compared to 2013.

Total expenses amounted to $276.7 million ($258.8 million for 2013), and included $6 million in restructuring costs, along with operating expenses now incurred within the banking division, following the acquisition of RBC Royal Bank's Jamaica banking operations.

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