Sagicor Group Jamaica triples profit in Q1 despite market volatility
Sagicor Group Jamaica indicates that it is maintaining “ a disciplined approach to managing liquidity and capital while actively pursuing strategic opportunities.” The company is operating within the context of an increasingly volatile environment, management stated in the first financial report for 2025.
Regardless, for the first quarter ended March 31 net profit attributable to shareholders increased 297 per cent to $3.97 billion.
Sagicor Group Jamaica’s insurance revenue increased by J$1.79 billion, or 14 per cent, year-over-year.
Net investment income of $10.23 billion was more than double the prior year’s $4.86 billion. Realised and unrealised gains, which increased by a total of $4.97 billion, were supplemented by growth in net interest income of $0.53 billion.
Fees and other revenue improved by 2 per cent to $4.97 billion, primarily driven by commercial banking activities. Stockholders’ equity ended the three-month period at $104.24 billion (December 2024: $102.17 billion), which accounts for dividends declared of $3.01 billion.
Total assets ended the quarter at $620.57 billion (December 2024: $597.79 billion), mainly due to the $20.23 billion increase in financial investments and the $6.13 billion increase in the Commercial Bank’s loan portfolio.
This growth in assets was funded primarily by the $10.90 billion rise in deposit and security liabilities as well as the $3.91 billion rise in insurance liabilities.
Long-Term insurance, comprised of products whose contract boundaries exceed one year in duration and are measured using the General Measurement Model (GMM) and Variable Fee Approach (VFA) under IFRS 17, produced net profit of $2.35 billion (2024: $0.25 billion)
It continues to report higher insurance revenue through the release of contractual service Margin (CSM) of $1.51 billion (2024: $1.43 billion) and the generation of new business CSM of $2.15 billion (2024: $1.12 billion).
The insurance service result improved significantly over the prior year’s quarter, which included a one off adjustment to the actuarial models that increased the loss component and caused insurance expenses to be abnormally high.
The segment was also positively impacted by $1.10 billion (2024: -$0.71 billion) in net mark-to market experience gains.
Cash and cash equivalents as at March 31, 2025, were $49.92 billion (2024: $46.84 billion). The Group’s net cash used in operating activities was $13.74 billion (2024: $2.89 billion), this was driven by a $11.87 billion increase in net investment purchases funded by the growth in deposits and securities liabilities as well as cash and cash equivalents at the start of the year.
Regulatory capital requirements continue to be exceeded by all operating entities.
Short-Term Insurance which includes products whose contract boundaries are less than one year and are measured using the Premium Allocation Approach (PAA) under IFRS 17.
The segment reported improved insurance revenue of $9.11 billion (2024: $7.85 billion) and net profit of $0.87 billion (2024: $0.45 billion).
Group health and life products generated new business sales of $0.27 billion, primarily from the corporate client portfolio, underscoring the segment’s ongoing growth. However, the prolonged elevation of drug prices and other medical costs continued to compress health insurance product margins.
The Commercial Banking segment produced net profit of $0.49 billion (2024: $0.53 billion). It recorded an 11 per cent increase in revenue, supported by higher net interest income and larger transaction volumes on its card payments portfolios.
The loan portfolios continued to grow, with $8.50 billion in new loans written contributing to a $0.50 billion increase in interest income. Deposits and other funding liabilities grew by $3.31 billion (2024: $4.10 billion) during the three-month period.
The Investment Banking segment recorded net profit of $0.54 billion compared to the prior year’s $0.12 billion. Net investment income of $1.58 billion increased by 94 per cent (2024: $0.81 billion), primarily due to net trading income of $0.86 billion.
Although short-term funding rates remained high, interest expense decreased by 4 per cent to $1.22 billion (2024: $1.28). The segment’s Cayman operation continues to grow its funding base, but its net interest margin remains challenged.
Source: Jamaica Stock Exchange.
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