LIFE insurance giant Sagicor Life Jamaica put in a most impressive performance for the financial year ended 31 December 2011 which saw an 18 per cent increase in net profits inspite of a challenging, contracting economy.

For the year under review, Sagicor Life Jamaica generated revenues of $28.67 billion, a 12 per cent increase on the $25.66 billion posted for the prior year. This revenue growth was driven in the main by life insurance premium income, and a large single premium annuity plan written during the third quarter. For 2011, net premium revenue came to J$18.7 billion, $2.7 billion more than for the previous year. Individual Life contributed $9.4 billion to total revenue and brought in a net profit of $2.6 billion. This compares favourably with the prior year’s figures for individual life which saw total revenues of $8.51 billion producing an after-tax profit of $1.66 billion.

Employee benefits for the year under review weighed in with total revenues of $14.5 billion, generating an after tax profit of $2 billion. For 2010, this revenue arm contributed $12.1 billion, resulting in an after tax profit of $1.5 billion. Sagicor holds a substantial majority stake in PanCaribbean Financial Service (85 per cent) which itself reported a net profit of J$1.7 billion for 2011. PanCaribbean is the jewel in the crown of Sagicor’s Banking and Asset Management arm. For 2011 this segment line recorded total revenues of $4.01 billion, which in turn produced an after-tax profit of $1.62 billion. Again these numbers represented an increase on 2010’s where total revenues came to $3.71 billion and the after-tax profit figure was $1.42 billion.

Sagicor Life Jamaica’s produced net profit attributable to stockholders of J$5.52 billion for the 2011 financial year, an 18 per cent increase on the $4.67 posted for 2010. For the year under review, all of Sagicor’s revenue earners did well, growing over the prior year. The group attributed this performance to strong insurance and annuities new business; improved conservation of business in-force, insurance benefits experience which has been generally favourable.

Administrative expenses were successfully contained and in fact came in 2 per cent lower than in the prior year at $6.13 billion For 2010, administrative expenses came to $6.23 billion

Speaking with Caribbean Business Report from Sagicor’s headquarters in New Kingston, President and CEO Richard Byles said: ” We had a very good year and the proof of that are in the profits which are up 18 per cent. This is good in the sense that revenues were also up by 12 per cent in this economy — that is pretty significant. What it proves is that even in a difficult economy exceptional people and exceptional companies can succeed. That’s the lesson I draw because it is very tough in this Jamaican economy to sell more insurance.

“What we are seeing is that whether on the individual or group side our people go out and sell more.That whole strong team spirit and ambition that is so prevelant in the company produces good top line results even in a difficult situation.”

Part II next week.