Sagicor Financial Reports First Quarter 2026 Results
Sagicor Financial Reports First Quarter 2026 Results |
| [13-May-2026] |
TORONTO and BARBADOS, May 13, 2026 /CNW/ - Sagicor Financial Company Ltd. (TSX: SFC) ("Sagicor Financial" or "Sagicor" or the "Company"), a leading financial services provider in Canada, the United States, and the Caribbean, today announced its results for the first quarter ended March 31, 2026. All figures are in US$ unless otherwise stated. Q1 Highlights
Andre Mousseau, President and Chief Executive Officer, said: "While our underlying business is sound, our Q1 financials delivered seasonally soft core earnings(1) and a loss due to a combination of asset price movement and certain one-time items. Core earnings to shareholders(1) of $25 million included $8 million of negative core insurance experience,(1) predominantly due to seasonal mortality in our North American segments. Absent that mortality, we would have hit a core ROE(1) of approximately 13%. Q1 was adversely affected by $49 million of market experience losses(1) related to lower asset prices in the U.S. and Canadian fixed income and equity markets, partially offset by the mitigating impact of liability revaluations. While these values create significant volatility in our reported net income from quarter to quarter, we expect these gains and losses to trend to approximately nil over time. We remind our investors that our market experience has been net positive in aggregate since the current accounting standard that drives this volatility was implemented in 2023. Q1 was also affected by certain one-time charges related to our Sagicor Life segment as we prepare to merge our Caribbean subsidiaries. Seeing through this noisy quarter, we continue to make excellent progress on our strategic initiatives to drive return on equity(1) expansion and future growth, and we reiterate our 2027 and 2028 targets for 14% and 15% core returns on shareholders' equity,(1) respectively." Overall Sagicor Group – Financial Highlights Sagicor's first quarter 2026 core earnings to shareholders(1) were $24.9 million. The Company's operating segments generated steady new business production(1) leading to solid new business CSM(1) of $36.7 million. Core ROE(1) was 9.9%. When adjusted for core insurance experience losses,(1) core ROE(1) would have been approximately 13%, within management's expectations. Sagicor remains well capitalized with a Group LICAT(1) ratio of 134% and a financial leverage ratio(1) of 27.5%. Consolidated Highlights
Business Segment Performance Sagicor has four main reporting operating segments: Sagicor Canada (ivari), Sagicor Life USA, Sagicor Jamaica (of which the Company owns 49.1% and which is consolidated by the Company), and Sagicor Life (which includes the southern Caribbean).
Business Segment - Highlights Sagicor Canada
Sagicor Life USA
Sagicor Jamaica
Sagicor Life
Head Office, Other, and Adjustments
Dividends On May 13, 2026, the Board of Directors of Sagicor approved and declared a quarterly dividend of US 7.5¢ per common share. This quarterly dividend will be paid on June 17, 2026 to shareholders of record at the close of business on May 27, 2026. Normal Course Issuer Bid Sagicor repurchased 2,200 shares which were cancelled in Q1 for a total cost of less than US$0.1 million. The number of issued and outstanding common shares as at March 31, 2026 was 136,165,858, net of any treasury shares. Management's Discussion and Analysis, Condensed Consolidated Financial Statements (Unaudited), and Supplemental Information Package This news release, which was approved by the Company's Board of Directors and Audit Committee, should be read in conjunction with the Company's unaudited condensed consolidated financial statements and accompanying MD&A and supplemental information package. The unaudited financial statements, MD&A, and supplemental information package are available on the Company's website at investors.sagicor.com and the unaudited financial statements and MD&A will soon be filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca. Conference Call Sagicor Financial Company Ltd. will host a conference call for analysts and investors on Friday, May 15, 2026, at 10:00 a.m. Eastern Daylight Time in Toronto (10:00 a.m. Atlantic Standard Time in Barbados and Trinidad and Tobago, 9:00 a.m. Eastern Standard Time in Jamaica). To listen to the call via live audio webcast, visit the Company's website at investors.sagicor.com or at https://app.webinar.net/3myk1KvRJO6. The conference call is also available by dialing 1-416-945-7677 or 1-888-699-1199 (North American toll free) or 448002797040 (United Kingdom). To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4sVHbic to receive an automated call back. A replay will also be available until June 15, 2026, by dialing 1-646-517-4150 or 1-888-660-6345 (North American toll free), passcode 97057#. A transcript of the call will also be made available on investors.sagicor.com. About Sagicor Financial Company Ltd. Sagicor Financial Company Ltd. (TSX: SFC) is a leading financial services provider with over 185 years of history in the Caribbean, over 90 years of history in Canada, and over 70 years of history in the United States. Sagicor offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, investment management, 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.
Forward-Looking Information Certain information contained in this news release may be forward-looking statements, including the outlook and financial guidance provided herein. Although Sagicor believes that its outlook is reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Sagicor's outlook serves to provide shareholders, market analysts, investors, and other stakeholders with a basis for adjusting their expectations with regard to our performance throughout the year and may not be appropriate for other purposes. Forward-looking statements are often, but not always, identified by the use of words such as "expect", "anticipate", "target", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may", "would" and "should" and similar expressions or words suggesting future outcomes. These forward-looking statements reflect material factors and expectations and assumptions of Sagicor. Sagicor's estimates, beliefs, assumptions and expectations contained herein 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.sedarplus.ca). Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which reflect Sagicor's estimates, beliefs, assumptions and expectations only as of the date of this news release. Sagicor disclaims any obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, new assumptions, future events or otherwise, except as expressly required by law. Non-IFRS and Other Financial Measures A non-IFRS ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements and has a non-IFRS financial measure as one or more of its components. These financial measures do not have a standardized definition and may not be comparable to similar financial measures disclosed by other institutions. The following non-IFRS ratios use core earnings to shareholders as a component. Refer to the "Non IFRS and Other Financial Measures" section of this news release for the definition of core earnings to shareholders. Core basic earnings per share (Core Basic EPS): represents core earnings attributable to shareholders divided by the weighted average number of common shares outstanding. This is a measure to evaluate the Company's capacity to generate sustainable earnings. Core dividend payout ratio: This is the ratio of dividends declared per share to core basic earnings per share. Core return on shareholders' equity (Core ROE): This measures profitability using core earnings available to common shareholders as a percentage of the capital deployed to earn the core earnings. The Company calculates core ROE using average common shareholders' equity quarterly, as the average of common shareholders' equity at the start and end of the quarter, and annually, as the average of the quarterly average common shareholders' equity for the year. The quarterly Core return on shareholders' equity is annualized. The Company also reports certain non-IFRS measures and insurance industry metrics that are used to evaluate its performance. As non-IFRS measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other companies. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measures. These measures are provided as additional information to complement 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 are set out below. Please see the discussion below for an explanation or a reconciliation of certain non-IFRS measures. Assets Under Management ("AUM"): This measure indicates the size of Sagicor's managed assets across all business lines. It is comprised of on-balance sheet assets classified under non-restricted cash, financial investments, and segregated funds, as well as off-balance sheet external client assets for which Sagicor provides investment management services, such as mutual funds and institutional asset management. There is not a directly comparable IFRS financial measure disclosed in Sagicor's financial statements to which the measure relates. Group Life Insurance Capital Adequacy Test ("Group LICAT"): The Group's goal is to maintain adequate levels, at sufficient margins above minimum regulatory capital requirements, to maintain consumer confidence as well as credit ratings with external rating agencies. Management engages the Board with regards to actions necessary to maintain appropriate capital levels. Sagicor has voluntarily elected to follow OSFI's LICAT Guideline, specifically the latest amendment which became effective January 1, 2025. Core insurance experience gains / (losses) are the differences between management expected and actual insurance claims and losses attributable to underwriting performance. Core net investment result: This measure represents the net amount of investment income and finance expenses from contract liabilities and includes the following:
Market experience gains and losses: Impacts on net investment income and on finance expenses from assets and contract liabilities, arising from actual market variations (e.g. equity markets, interest rates and exchange rates). Return on shareholders' equity (ROE): IFRS does not prescribe the calculation of return on shareholders' equity and therefore a comparable measure under IFRS is not available. To determine this measure, reported net income / (loss) attributable to shareholders is divided by the average of common shareholders' equity at the start and end of the quarter, and annually, as the average of the quarterly average common shareholders' equity for the year. The quarterly return on shareholders' equity is annualized. This measure provides an indication of overall profitability of the company. Book value per share: To determine the book value per share, shareholders' equity is divided by the number of shares outstanding at the period end, net of any treasury shares. Revenues: Revenues is the sum of three IFRS measures: insurance revenue, net investment income, and fees and other income. Financial leverage ratio: This is the ratio of notes and loans payable (refer to note 7 of the Q1 2026 unaudited condensed consolidated financial statements) to total capital, as defined in this section. This ratio measures the proportion of debt the Company uses to finance its operations as compared with its capital. Total capital: This measure provides an indicator for evaluating the Company's performance. Total capital ($3.7 billion as at Q1 2026) is the sum of total shareholders' equity ($1.0 billion), notes and loans payable ($1.0 billion), non-controlling interests ($392 million) and net CSM ($1.3 billion). This measure is the sum of several IFRS measures. New business CSM: This measure is the amount of the contractual service margin added from contracts initially recognized in the period, net of reinsurance. New business production: This measure is equal to the amount of annuities and life insurance new business paid premium. Net CSM: This measure is the balance of the direct contractual service margin net of reinsurance contractual service margin. Net CSM to shareholders: This measure is the amount of the net CSM attributable to shareholders. Net premium: The sum of premiums written by an insurance company, less premiums ceded to reinsurance companies, plus any reinsurance assumed in the reporting period, excluding segregated fund premium. Shareholders' equity plus net CSM to shareholders: This measure is the sum of common shareholders' equity and Net CSM to shareholders and is an important measure for monitoring growth and measuring insurance businesses' value. Core earnings to shareholders: Core earnings to shareholders is intended to remove from reported earnings or loss the impacts of the following items that create volatility in Sagicor's results under IFRS, or that are considered to be not representative of Sagicor's business operating performance and long-term earnings potential including among others unexpected market-related impacts, changes in assumptions, management actions, certain acquisition or disposition related amounts and others such as items that are unusual in nature, impairment of intangibles, and tax effects of the aforementioned items, gross of non-controlling interests. Non-controlling interests on all the aforementioned items are included in Other. Each of these items is classified as a supplementary financial measure and has no directly comparable IFRS financial measure disclosed in Sagicor's consolidated financial statements to which the measure relates, nor are reconciliations available. The core earnings to shareholders can be reconciled to net income to shareholders as follows: Net Income and Core Earnings Reconciliation (US$ millions)
Revenues Reconciliation (US$ millions)
SOURCE Sagicor Financial Company Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:SFC |
