2010 not a great year for Sagicor
“DISAPPOINTING” is how Sagicor Group Chairman Stephen McNamara has described the 2010 financial year.
He said strong results from Caribbean operations were offset by losses in the global property and casualty business written through Sagicor at Lloyds, as well as increased financing costs and lower future investment yields which had a negative impact on actuarial liabilities.
He made the comments in his statement on the recently published financial results for the year ended December 31, 2010.
McNamara noted that Sagicor at Lloyds, like other Lloyds syndicates, had an extremely difficult year, incurring a significant increase in claims from both global catastrophes and British motor liability.
This resulted in a US$13.1-million net loss for Sagicor at Lloyds compared to a US$13.7-million net profit for 2009.
Meanwhile, the chairman said Sagicor Life Jamaica and its subsidiaries, Sagicor Life Cayman and Pan Caribbean Financial Services, had a very good year despite a lower interest rate environment.
The Sagicor Life Inc segment, which comprises the Barbados, Trinidad, Eastern Caribbean, Dutch Antilles and Belize life insurance operations, earned net income of US$30.2 million – less than the US$40.4 million in 2009.
Sagicor’s American operations continued to make progress in the United States, writing annuity, single premium life and periodic life business in that market. Group net income for the year amounted to US$41.6 million, less than half the restated US$87.6 million for 2009. Net income attributable to shareholders was US$16.6 million compared to a restated US$66.8 million for 2009.
Group total comprehensive income declined from US$100.8 million to US$80.6 million.
Earnings per share amounted to US$0.057, a fraction of the US$0.24 restated earnings the year before.
Total assets increased from US$4.5 billion to US$4.9 billion and total revenue increased to US$1, 256.1 million, better than the US$1, 205.3 million in 2009. The board declared a final dividend of US$0.02 for 2010 which, taken with the interim dividend paid in October 2010, maintains a total dividend of US$0.04 for the year.
