Date: March 8, 2018
Sagicor Group Jamaica Limited (SJ), for the twelve months ended December 31, 2017, reported total revenues increased by 18% to $70.44 billion from $59.70 billion in 2016.Total revenue was broken down as follows;
Net premium revenue increased by 22% to a total of $41 billion compared to $33.49 billion last year. According to Management, “net premium Income of $41.00 billion, which accounts for 58% of revenue, was 22% up on 2016. Earned premiums for the Individual lines of business of $21.33 billion were higher by 11%, influenced by record new business in Jamaica and improved conservation of the inforce block.”
Net Investment Income increased to $21.43 billion from $19.35 billion in 2016, a 11% advance.
Fees and other revenue increased 17% to $8.02 billion from $6.86 billion in 2016.
Management also noted, “Group Insurance and annuity premiums of $20.25 billion were much higher as a result of very strong growth in the Annuities portfolio. Sagicor Bank’s revenue of $10.8 billion was 18% up on last year as the loans, cards and payments business expanded while Sagicor Investments’ revenue of $4.4 billion was 9% higher than last year. Group consolidated Investment income of $20.61 billion, before interest expense and capital gains, was 5% higher than in 2016.”
Benefits and Expenses totaled $56.59 billion for the period, an increase of 23% from $45.99 billion. The growth was mainly driven by increase changes in insurance and annuity liabilities which grew by 123% to $10.68 billion from $4.78 billion. Administrative expenses for the year reflected a $2.29 billion increase to $16.61 billion compared the $14.33 billion in 2016. Provision for Credit Losses in 2017 amounted to $711.41 million. commission and related expenses rose 10% to close at $4.88 billion versus $4.43 billion a year earlier. Net insurance benefits incurred climbed 4% from $21.05 billion booked in 2016 to $21.91 billion for the 2017 financial year.
Share of loss from joint venture amounted to $9.71 million relative to a profit of $8.26 million a year earlier. Share of profit from associate for the period totaled $862.85 million compared to $495.05 million in 2016.
Share of loss from disposal of associate totaled $289.58 million compared to nil for the period ended December 31, 2016.
Investment and corporation taxes slightly decreased to $2.92 billion for the period (2016: $2.95 billion). Consequently, net profit amounted to $12.07 billion relative to $11.26 billion in 2016.
Earnings per share (EPS) for the year amounted to $3.09 (2016: $2.88), while for the quarter the EPS amounted to $0.77 . The number of shares used in our calculation is 3,905,634,918. SJ’s last traded price as at March 7, 2018 was $ 37.21.
Balance Sheet at a glance:
Total Assets increased by 3% or $11.08 billion to close at $352.04 billion as at December 31, 2017 from $340.95 billion the year prior. The movement was attributed to a $5.26 billion increase in ‘Loans & leases’, which closed at $61.43 billion (2016: $56.18 billion). ‘Cash reserve at Central Bank’ increased 38% to $11.42 billion (2016: $8.25 billion), while ‘Pledged assets’ totaled $81.61 billion (2016: $77.21 billion).
Equity attributable to stockholders of the company as at December 31, 2017 stood at $68.50 billion (2016: $56.41 billion) resulting in book value per share of $17.54 (2016: $14.44).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.