Sagicor Financial Company Ltd. Reports Second Quarter 2020 Results
(USD, unless otherwise noted)
TORONTO and BARBADOS, Aug. 14, 2020 /CNW/ - Sagicor Financial Company Ltd. (TSX: SFC) ("Sagicor" or "Company") today announced its results for the second quarter ended June 30, 2020.
Dodridge Miller, Group President and Chief Executive Officer, said:
"While the pandemic continues to impact our new business growth, Sagicor delivered consistent top line revenue, demonstrating our resilience and ability to sustain the business in challenging times due to our diverse sources of income."
"The outlook for the regions in which we operate remains uncertain given the unpredictable nature of the length and severity of the contraction of economic activity, which also continues to impact new business. However, the pandemic has accelerated the implementation of various innovations for meeting and exceeding the needs of our clients despite the challenges presented by COVID-19 and the 'new norm'. Sagicor also continues to pursue new, innovative ways of doing business that create value and the best possible service to its clients."
"We are also generally pleased that the underlying performance of our company demonstrates that our business can navigate such economic challenges. Many of the asset price declines we observed in March 2020 have substantially reversed themselves already in Q2. While new business generation will continue to be disrupted for the foreseeable future, as borders slowly reopen and when economies resume normally, we remain in a strong capital position to move forward our growth objectives."
Overall Sagicor Group Highlights
The Board of Directors of Sagicor Financial Company Ltd. approved and declared a quarterly dividend of US$0.05625 per common share payable in the third quarter. This quarterly dividend will be paid on September 18, 2020, to shareholders of record at the close of business on August 28, 2020. Sagicor will continue to review its dividend policy going forward given the economic situation stemming from the COVID-19 pandemic.
Business Segment Performance
Sagicor considers its business within three main operating segments: Sagicor Life Inc. (includes southern Caribbean), Sagicor Jamaica (of which Sagicor Group owns 49% and which is consolidated by the Company), and Sagicor USA.
Business Segment Highlights
Sagicor Life Inc.
Outlook for 2020
The Company's financial performance for the balance of 2020 remains uncertain. We have put in place a series of initiatives to mitigate the effect of the pandemic on our operations and financial results. We are cautiously optimistic that signs of improving conditions will persist through Q3 and Q4 of 2020; however, because the length and severity of the economic contraction in our operating jurisdictions remains unpredictable, the impact of the pandemic on financial results for the balance of the year remains uncertain.
Normal Course Issuer Bid
As previously announced, Sagicor authorized a share buyback program that allows it to repurchase up to 3 million of its common shares under a normal course issuer bid. As at June 30, 2020, the Company had purchased 963,000 shares in the open market for cancellation for an aggregate purchase price of approximately $3.9 million.
Management's Discussion and Analysis and Consolidated Financial Statements (Unaudited)
This press release, which was approved by the Company's Board of Directors and Audit Committee, should be read in conjunction with the Company's unaudited financial statements and accompanying management's discussion and analysis ("MD&A"). The unaudited financial statements and MD&A are available on the Company's website at www.sagicor.com and will soon be filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
Sagicor Financial Company Ltd. will host a conference call for analysts and investors to review its earnings results on Monday, August 17 at 11:00 a.m. EDT in Toronto (11:00 a.m. AST in Barbados and Trinidad, 10:00 a.m. EST in Jamaica). To listen to the call via live audio webcast, visit the Company's website at www.sagicor.com, under the tab "Investor Relations". The conference call (#18899665) is also available by dialing 1-416-764-8688 or 1-888-390-0546 (North American toll free) or 08006522435 (United Kingdom) or 1-866-290-2216 (Barbados) or 1-800-207-8221 (Trinidad). A replay will also be available until September 17, 2020 by dialing 1-416-764-8677 or 1-888-390-0541 (North American toll free), passcode 899665#.
The Company reports certain non-IFRS measures that are used to evaluate the performance of its businesses and the performance of their respective segments. As non-IFRS measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measure.
The Company references non-IFRS measures and insurance industry metrics in this document and elsewhere. Non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these are provided as additional information to complement those IFRS measures by providing further understanding of the results of the operations of the Company from management's perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company's financial information reported under IFRS. Non-IFRS measures used to analyze the performance of the Company's businesses include but are not limited to: return on shareholders' equity, book value per share, MCCSR, debt to capital ratio, debt to equity ratio, dividend pay-out ratio, and coverage ratio. Please see the "Non-IFRS Financial Information" section of the Management's Discussion and Analysis for a reconciliation of these non-IFRS measures.
Certain information contained in this news release may be forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may", "would" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to the impact of the COVID-19 pandemic. These forward-looking statements reflect material factors and expectations and assumptions of Sagicor. Sagicor's estimates, beliefs and assumptions are inherently subject to uncertainties and contingencies regarding future events and as such, are subject to change. Risks and uncertainties not presently known to Sagicor or that it presently believes are not material could cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional information on these and other factors that could affect events and results are included in other documents and reports that will be filed by Sagicor with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Sagicor's expectations only as of the date of this document. Sagicor disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
About Sagicor Financial Company Ltd.
Sagicor Financial Company Ltd. (TSX: SFC) is a leading financial services provider in the Caribbean, with almost 180 years of history, and has a growing presence as a provider of life insurance products in the United States. Sagicor offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, and real estate. Sagicor's registered office is located at Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda, with its principal office located at Cecil F De Caires Building, Wildey, St. Michael, Barbados. Additional information about Sagicor can be obtained by visiting www.sagicor.com.
As a result of the transaction with Alignvest Acquisition II Corporation, the financial history of the Company presented herein, as well as in the Company's filings made after the closing of the transaction, is that of Sagicor Financial Corporation Limited, now a wholly-owned subsidiary of the Company.
SOURCE Sagicor Financial Company Ltd.
Company Codes: Toronto:SFC
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