SAGICOR FINANCIAL CORPORATION LIMITED
FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2018
CHAIRMAN'S REVIEW
The Sagicor Group delivered strong operational performance for financial year 2018. Each business segment grew their revenue, and each delivered positive net income, in spite of significant one- time items, in particular the restructuring of the Government of Barbados debt (GoB). We are pleased with our performance in the face of these challenges.
Total revenue increased 22% to US $1,484.3 million, compared to the prior year amount of US $1,218.6 million, an increase of US $265.7 million. All segments experienced year on year growth. The largest single source of revenue growth was increased premiums in the USA segment driven by a strategic direction to increase production and to cease reinsurance and retain 100% of production starting in Q2 2018. In addition, fee income grew significantly in the Jamaican segment due in part to growth in investment banking business.
Group net income was US $103.0 million, compared to US $115.9 million in the prior year. Net income attributable to shareholders was US $43.7 million, compared to US $72.4 million in the prior year, a reduction of US $28.7 million. Both Group net income and net income attributable to shareholders were affected by the GoB restructuring. Management estimates that absent the GoB restructuring, net income attributable to shareholders would have been US $82.9 million, representing growth of 15%.
Benefits were US $765.3 million, compared to US $659.4 million for the prior year, an increase of 16%. The growth in benefits (which include actuarial provisions for future benefits) reflects and is consistent with our revenue growth.
Expenses were US $590.7 million, compared to US $436.4 million for the prior year, driven in part by US $95.5 million of credit impairment provisions, which were partially offset by positive change in actuarial liabilities related to restructured debt. Administrative expenses grew 13% to US $303.1 million, as the company incurred one-time costs related to its ongoing transaction with Alignvest Acquisition II Corporation. Commissions and related compensation grew 19% to US $117.3 million, in line with growth in premiums.
Income taxes were US $50.7 million. This compared to US $19.3 million in the prior year when the Company had a one-time tax benefit of US $14.2 million in the USA segment arising from the Tax Cuts and Jobs Act. The remaining increase in taxes resulted from growth in taxable lines of business.
Group comprehensive income was US $38.9 million, compared to US $180.1 million for the prior year, a decrease of US $141.2 million. Group comprehensive income in 2018 included the provision for GoB debt restructuring and management estimates that group comprehensive income would have been US $87.7 million without such restructuring. Group comprehensive income in 2017 also benefited from significant gains on available for sale assets and retranslation of foreign currency assets, both of which reversed to losses in 2018.
Group assets were US $7.3 billion and Group liabilities were US $6.2 billion, resulting in Group equity of US $1.1 billion, compared to US $0.9 billion in the prior year. Shareholders' equity was US $600.9 million, compared to US $624.6 million for the prior year.
The Group's debt was US $490.3 million, with a debt to capital ratio of 30.2%, compared to 30.6% for the prior year. The increase in the Group's debt is related to the debt of the Sagicor X Fund Group, which remains unchanged, but is now consolidated onto our balance sheet.
Sagicor has fully provisioned for the exchange of GoB debt as agreed with the Government of Barbados. On September 7, 2018 the Government of Barbados (GoB) entered into a Staff-Level Agreement with the International Monetary Fund (IMF) to provide financial and technical assistance. As part of the programme, the GoB announced on October 15, 2018 that its Exchange Offer received unanimous support from the domestic creditors including Sagicor. The Sagicor Group has made a gross provision of US $ 98.8 million and took a charge, net of offsetting adjustments, of US $ 48.8 million attributable to shareholders.
During the year the Sagicor Group adopted two new accounting standards which became effective from January 1, 2018: IFRS 15, Revenue from Contracts with Customers which affects how income is recognised on contracts by companies, and IFRS 9, Financial Instruments. IFRS 9 changes the way that financial instruments are recognised and measured. The standard introduces new measurement categories for financial instruments and an expected, instead of an incurred, credit loss model for impairment. In addition, our subsidiary, Sagicor Group Jamaica, was deemed to have effective control of Sagicor X Fund Group from October 1, 2018 based on its shareholding and influence and from that date has accounted for Sagicor X Fund as a subsidiary as required by IFRS 10. This change has resulted in the operations, results and balance sheet of Sagicor X Fund Group being included within the financial statements. This has the effect of increasing assets and debt on our consolidated balance sheet, including a significant increase in non-controlling interests in subsidiaries.
The discontinued operations represent our UK business, which was sold in 2013. During 2018 there were positive developments in this exposure which resulted in net income of US $7.1 million. At close of the year the company carried a receivable of US $17.2 million in respect of this business which was settled by a cash payment to us in February 2019 to fully close off our exposure to this business.
Sagicor voluntarily adopted Canadian risk based capital and reserving standards in 1991. The capital ratio, "Minimum Continuing Capital and Surplus Requirements" (MCCSR) seeks to demonstrate to stakeholders the financial strength of the company. Canadian regulators expected insurance companies to maintain an MCCSR ratio of 150% and Sagicor has consistently maintained a ratio above 200%. As at the end of the year our MCCSR Ratio was 234%.
Sagicor is rated on an annual basis by AM Best, Standard and Poor's Global Ratings, and Fitch Ratings. We have been rated by AM Best since 1998, S&P since 2006 and Fitch since 2015. These ratings are an independent measure of our financial strength. The current ratings are as follows:
• S&P - BB- stable
• Fitch - BB- stable
On November 27, 2018, Sagicor Group announced that it had entered into a transformative transaction with Alignvest Acquisition II Corporation (Alignvest) which heralds in yet another significant milestone in our long and storied history. Through this transaction, Sagicor will acquire a listing on the Toronto Stock Exchange, where we will have international exposure, greater access to capital to fund growth and be exposed to proper price discovery for its shares, providing an opportunity to unlock fair value for all shareholders. At the same time, Sagicor also announced that Sagicor and Alignvest will acquire Scotiabank's life insurance operations in Jamaica and in Trinidad & Tobago. The completion of the transaction with Alignvest is expected in the second half of 2019, subject shareholders' approval and customary regulatory approvals.
On behalf of the Board of Sagicor, I wish to thank our shareholders, staff, agents and customers for their continued support.
Stephen McNamara Chairman
April 18, 2019
FINANCIAL HIGHLIGHTS (in US Currency except percentages) | Year ended 2018 | December 31 2017 |
Total revenue Overall Group net income Overall shareholders' net income Net income allocated to non-controlling interests | $1,484.3m $103.0m $43.7m $52.1m | $1,218.6m $115.9m $72.4m $44.5m |
Total equity | $1,135.5m | $937.2m |
Book Value per share | $1.96 | $2.04 |
Ratio of Debt to Capital | 30.2% | 30.6% |
Earnings per common share Annualised return to common shareholders' equity | 11.9¢ 6.2% | 20.5¢ 11.3% |
SFCL Q4 Audited Financial Results
Financial Highlights
Consolidated Statement of Financial Position
As of December 31, 2018,
Amounts expressed in US$000
|
| 2018 | 2017 restated |
January 1, 2017 restated |
ASSETS |
|
|
|
|
Investment property |
| 93,494 | 80,816 | 80,662 |
Property, plant and equipment |
| 262,288 | 165,560 | 167,723 |
Associates and joint ventures |
| 236,132 | 97,223 | 87,293 |
Intangible assets |
| 97,312 | 81,714 | 83,487 |
Financial investments |
| 5,347,663 | 4,953,241 | 4,813,748 |
Reinsurance assets |
| 714,597 | 797,391 | 777,344 |
Income tax assets |
| 54,365 | 39,980 | 59,575 |
Miscellaneous assets and receivables |
| 143,647 | 228,543 | 183,018 |
Cash resources |
| 358,687 | 360,064 | 279,070 |
Assets of discontinued operation |
| 17,239 | 10,110 |
|
Total assets |
| 7,325,424 | 6,814,642 | 6,531,920 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Actuarial liabilities |
| 3,024,464 | 2,944,700 | 2,771,824 |
Other insurance liabilities |
| 247,577 | 224,159 | 207,122 |
Investment contract liabilities |
| 390,397 | 379,018 | 377,576 |
Total policy liabilities |
| 3,662,438 | 3,547,877 | 3,356,522 |
Notes and loans payable |
| 490,275 | 413,805 | 395,213 |
Deposit and security liabilities |
| 1,674,033 | 1,559,232 | 1,623,325 |
Provisions |
| 74,287 | 80,027 | 101,292 |
Income tax liabilities |
| 48,236 | 29,502 | 51,078 |
Accounts payable and accrued liabilities |
| 240,694 | 246,976 | 204,975 |
Total liabilities |
| 6,189,963 | 5,877,419 | 5,732,405 |
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
| 3,061 | 3,059 | 3,029 |
Share premium |
| 300,665 | 300,470 | 297,050 |
Reserves |
| (76,995) | (47,388) | (64,798) |
Retained earnings |
| 374,138 | 368,451 | 301,799 |
Total shareholders' equity |
| 600,869 | 624,592 | 537,080 |
Participating accounts |
| 4,078 | 865 | 1,291 |
Non-controlling interests in subsidiaries |
| 530,514 | 311,766 | 261,144 |
Total equity |
| 1,135,461 | 937,223 | 799,515 |
|
|
|
|
|
Total liabilities and equity |
| 7,325,424 | 6,814,642 | 6,531,920 |
Consolidated Statement of Income
Year Ended December 31, 2018
Amounts Expressed in US$000
|
| 2018 |
| 2017 restated |
|
|
|
|
|
REVENUE |
|
|
|
|
Premium revenue |
| 1,141,429 |
| 898,354 |
Reinsurance premium expense |
| (87,388) |
| (152,722) |
Net premium revenue |
| 1,054,041 |
| 745,632 |
Gain on derecognition of amortised cost investments |
| 10,434 |
| - |
Gain reclassified to income from accumulated OCI |
| 9,339 |
| - |
Net investment income |
| 295,965 |
| 379,236 |
Fees and other revenue |
| 114,482 |
| 93,740 |
Total revenue |
| 1,484,261 |
| 1,218,608 |
|
|
|
|
|
BENEFITS |
|
|
|
|
Policy benefits and change in actuarial liabilities |
| 728,360 |
| 719,320 |
Policy benefits and change in actuarial liabilities reinsured |
| (15,555) |
| (114,839) |
Net policy benefits and change in actuarial liabilities |
| 712,805 |
| 604,481 |
Interest costs |
| 52,521 |
| 54,949 |
Total benefits |
| 765,326 |
| 659,430 |
|
|
|
|
|
EXPENSES |
|
|
|
|
Administrative expenses |
| 303,071 |
| 267,427 |
Commissions and related compensation |
| 117,316 |
| 98,749 |
Premium and asset taxes |
| 13,956 |
| 13,569 |
Finance costs |
| 36,511 |
| 34,746 |
Credit impairment losses |
| 95,519 |
| - |
Depreciation and amortisation |
| 24,277 |
| 21,871 |
Total expenses |
| 590,650 |
| 436,362 |
|
|
|
|
|
OTHER |
|
|
|
|
Gain arising on business combinations, acquisitions and divestitures |
| 18,238 |
| 2,261 |
|
| 2018 |
| 2017 restated |
|
|
|
|
|
INCOME BEFORE TAXES |
| 146,523 |
| 125,077 |
Income taxes |
| (50,702) |
| (19,313) |
NET INCOME FROM CONTINUING OPERATIONS |
| 95,821 |
| 105,764 |
Net income from discontinued operation |
| 7,129 |
| 10,110 |
NET INCOME FOR THE YEAR |
| 102,950 |
| 115,874 |
|
|
|
|
|
Net income/(loss) is attributable to: |
|
|
|
|
Common shareholders: |
|
|
|
|
From continuing operations |
| 36,521 |
| 62,313 |
From discontinued operation |
| 7,129 |
| 10,110 |
|
| 43,650 |
| 72,423 |
Participating policyholders |
| 7,222 |
| (1,044) |
Non-controlling interests |
| 52,078 |
| 44,495 |
|
| 102,950 |
| 115,874 |
|
|
|
|
|
Basic earnings per common share: |
|
|
|
|
From continuing operations |
| 11.9 cents |
| 20.5 cents |
From discontinued operation |
| 2.3 cents |
| 3.3 cents |
|
| 14.2 cents |
| 23.8 cents |
|
|
|
|
|
Fully diluted earnings per common share: |
|
|
|
|
From continuing operations |
| 11.7 cents |
| 20.0 cents |
From discontinued operation |
| 2.3 cents |
| 3.2 cents |
|
| 14.0 cents |
| 23.2 cents |
Consolidated Statement of Comprehensive Income
Year Ended December 31, 2018
Amounts Expressed in US$000
OTHER COMPREHENSIVE INCOME |
| 2018 |
| 2017 restated |
|
|
|
|
|
Items net of tax that may be reclassified subsequently to income: |
|
|
|
|
Financial assets measured at fair value through other comprehensive income (FVOCI): |
|
|
|
|
(Losses) on revaluation |
| (82,864) |
| - |
Losses / (gains) transferred to income |
| (1,891) |
| - |
Available for sale assets: |
|
|
|
|
Gains on revaluation |
| - |
| 62,577 |
(Gains) transferred to income |
| - |
| (12,259) |
Net change in actuarial liabilities |
| 41,614 |
| (18,152) |
Retranslation of foreign currency operations |
| (25,185) |
| 9,920 |
|
| (68,326) |
| 42,086 |
|
|
|
|
|
Items net of tax that will not be reclassified subsequently to income: |
|
|
|
|
Gains / (losses) on revaluation of owner-occupied property |
| 6,894 |
| (1,759) |
Gains / (losses) on equity securities designated at fair value through other comprehensive income |
| 73 |
| - |
Gains / (losses) on defined benefit plans |
| (2,685) |
| 23,914 |
|
| 4,282 |
| 22,155 |
|
|
|
|
|
OTHER COMPREHENSIVE INCOME / (LOSS) FROM CONTINUING OPERATIONS |
| (64,044) |
| 64,241 |
TOTAL COMPREHENSIVE INCOME |
| 2018 |
| 2017 restated |
|
|
|
|
|
Net income |
| 102,950 |
| 115,874 |
Other comprehensive income / (loss) |
| (64,044) |
| 64,241 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| 38,906 |
| 180,115 |
|
|
|
|
|
Total comprehensive income / (loss) is attributable to: |
|
|
|
|
Common shareholders: |
|
|
|
|
From continuing operations |
| 2,917 |
| 96,436 |
From discontinued operation |
| 7,129 |
| 10,110 |
|
| 10,046 |
| 106,546 |
Participating policyholders |
| 6,356 |
| (210) |
Non-controlling interests |
| 22,504 |
| 73,779 |
|
| 38,906 |
| 180,115 |
Consolidated Statement of Changes in Equity
Year Ended December 31, 2018
Amounts Expressed in US$000
| Share Capital (note 21) | Share Premium (note 21) | Reserves (note 22) | Retained Earnings | Total Shareholders' Equity | Participating Accounts | Non-controlling Interests | Total Equity |
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
Balance, December 31, 2017 as reported previously | 3,059 | 300,470 | (47,482) | 367,327 | 623,374 | 865 | 308,089 | 932,328 |
Prior year adjustment to actuarial liabilities (note 50) | - | - | 94 | 1,124 | 1,218 | - | 3,677 | 4,895 |
Balance, December 31, 2017 as restated | 3,059 | 300,470 | (47,388) | 368,451 | 624,592 | 865 | 311,766 | 937,223 |
Transition adjustment on adoption of IFRS 9 (note 50) | - | - | (217) | (10,442) | (10,659) | (2,930) | (2,352) | (15,941) |
Balance, January 1, 2018 | 3,059 | 300,470 | (47,605) | 358,009 | 613,933 | (2,065) | 309,414 | 921,282 |
Total comprehensive income from continuing operations | - | - | (29,634) | 32,551 | 2,917 | 6,356 | 22,504 | 31,777 |
Total comprehensive income from discontinued operation | - | - | - | 7,129 | 7,129 | - | - | 7,129 |
Transactions with holders of equity instruments: |
|
|
|
|
|
|
|
|
Movements in treasury shares | 2 | 195 | - | - | 197 | - | - | 197 |
Changes in reserve for equity compensation benefits | - | - | (787) | - | (787) | - | (28) | (815) |
Dividends declared (note 21) | - | - | - | (15,300) | (15,300) | - | (18,554) | (33,854) |
Acquisition/disposal of subsidiary and insurance business | - | - | - | - | - | - | 222,755 | 222,755 |
Changes in ownership interest in subsidiaries | - | - | - | (3,092) | (3,092) | - | (9,581) | (12,673) |
Disposal of interest in subsidiaries | - | - | (935) | 935 | - | - | (2,221) | (2,221) |
Transfers and other movements | - | - | 1,966 | (6,094) | (4,128) | (213) | 6,225 | 1,884 |
Balance, December 31, 2018 | 3,061 | 300,665 | (76,995) | 374,138 | 600,869 | 4,078 | 530,514 | 1,135,461 |
| Share Capital (note 21) | Share Premium (note 21) | Reserves (note 22) | Retained Earnings | Total Shareholders' Equity | Participating Accounts (note 23) | Non-controlling Interests | Total Equity |
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
|
|
Balance, December 31, 2016 as reported previously | 3,029 | 297,050 | (64,795) | 300,865 | 536,149 | 1,291 | 257,974 | 795,414 |
Prior year adjustment to actuarial liabilities | - | - | (3) | 934 | 931 | - | 3,170 | 4,101 |
Balance, December 31, 2016 as restated | 3,029 | 297,050 | (64,798) | 301,799 | 537,080 | 1,291 | 261,144 | 799,515 |
Total comprehensive income from continuing operations | - | - | 21,537 | 74,899 | 96,436 | (210) | 73,779 | 170,005 |
Total comprehensive income from discontinued operation | - | - | - | 10,110 | 10,110 | - | - | 10,110 |
Transactions with holders of equity instruments: |
|
|
|
|
|
|
|
|
Allotments of common shares | 21 | 2,021 | - | - | 2,042 | - | - | 2,042 |
Movements in treasury shares | 9 | 1,399 | - | - | 1,408 | - | - | 1,408 |
Changes in reserve for equity compensation benefits | - | - | (6,270) | - | (6,270) | - | (75) | (6,345) |
Dividends declared | - | - | - | (15,216) | (15,216) | - | (19,861) | (35,077) |
Transfers and other movements | - | - | 2,143 | (3,141) | (998) | (216) | (3,221) | (4,435) |
Balance, December 31, 2017 as restated | 3,059 | 300,470 | (47,388) | 368,451 | 624,592 | 865 | 311,766 | 937,223 |
Consolidated Statement of Cash Flows
Year Ended December 31, 2018
Amounts Expressed in US$000
| Note | 2018 |
| 2017 restated |
OPERATING ACTIVITIES |
|
|
|
|
Income before taxes |
| 146,523 |
| 125,077 |
Adjustments for non-cash items, interest and dividends | 36.1 | 65,655 |
| (111,849) |
Interest and dividends received |
| 303,371 |
| 305,810 |
Interest paid |
| (89,029) |
| (83,627) |
Income taxes paid |
| (31,720) |
| (43,352) |
Net increase in investments and operating assets | 36.1 | (580,553) |
| (157,602) |
Net increase in operating liabilities | 36.1 | 232,016 |
| (45,282) |
Net cash flows - operating activities |
| 46,263 |
| (10,825) |
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
Property, plant and equipment, net | 36.2 | (326) |
| (13,385) |
Associates and joint ventures, net |
| (146) |
| (6,908) |
Dividends received from associates and joint ventures |
| 600 |
| 2,561 |
Purchase of intangible assets |
| (4,795) |
| (6,182) |
Changes in subsidiary and associate holdings, net of cash and cash equivalents |
| 10,422 |
| 7,766 |
Sale of subsidiaries, net |
| (13,795) |
| - |
Net cash flows - investing activities |
| (8,040) |
| (16,148) |
|
| 2018 |
| 2017 restated |
FINANCING ACTIVITIES |
|
|
|
|
Movement in treasury shares |
| (202) |
| (203) |
Redemption of SFC preference shares |
| (1) |
| - |
Shares issued to / (purchased from) non-controlling interests |
| 1,967 |
| (5,504) |
Changes in ownership of subsidiaries |
| (12,673) |
| - |
Notes and loans payable, net |
| (6,134) |
| 16,182 |
Dividends paid to common shareholders |
| (14,959) |
| (14,950) |
Dividends paid to non-controlling interests |
| (19,337) |
| (19,861) |
Net cash flows - financing activities |
| (51,339) |
| (24,336) |
|
|
|
|
|
Effects of exchange rate changes |
| (3,672) |
| 1,875 |
|
|
|
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS -CONTINUING OPERATIONS |
| (16,788) |
| (49,434) |
Cash and cash equivalents, beginning of year |
| 338,349 |
| 387,783 |
CASH AND CASH EQUIVALENTS, END OF YEAR |
| 321,561 |
| 338,349 |
Statement of Income by Segment
Year Ended December 31, 2018
Amounts Expressed in US$000
2018 | Sagicor Life | Sagicor Jamaica | Sagicor Life USA | Head office and other | Adjustments | Total |
|
|
|
|
|
|
|
Net premium revenue | 320,517 | 309,729 | 389,974 | 33,821 | - | 1,054,041 |
Net gain/(losses) on derecognition of financial assets measured at amortised cost | (279) | 10,279 | (7) | 441 | - | 10,434 |
Gains reclassified to income from accumulated OCI | 430 | 8,436 | 774 | (14) | (287) | 9,339 |
Interest income | 79,075 | 150,643 | 55,263 | 7,083 | 287 | 292,351 |
Other investment income | 1,092 | 18,554 | (15,805) | 214 | (441) | 3,614 |
Fees and other revenues | 7,925 | 97,985 | (8,894) | 17,504 | (38) | 114,482 |
Inter-segment revenues | 15,675 | - | - | 94,129 | (109,804) | - |
Total revenue | 424,435 | 595,626 | 421,305 | 153,178 | (110,283) | 1,484,261 |
Net policy benefits | 217,732 | 198,171 | 103,710 | 18,767 | - | 538,380 |
Net change in actuarial liabilities | (62,053) | 13,941 | 222,537 | - | - | 174,425 |
Interest expense | 11,152 | 33,820 | 5,514 | 2,035 | - | 52,521 |
Administrative expenses | 73,052 | 141,476 | 32,783 | 53,698 | 2,062 | 303,071 |
Commissions and premium and asset taxes | 43,140 | 49,941 | 29,167 | 9,024 | - | 131,272 |
Finance costs | - | 2,399 | 181 | (5) | 33,936 | 36,511 |
Credit impairment losses | 82,266 | 10,245 | 571 | 2,437 | - | 95,519 |
Depreciation and amortisation | 6,811 | 11,266 | 3,024 | 3,176 | - | 24,277 |
Inter-segment expenses | 2,863 (1) | 2,226 | 681 (1) | 15,090 | (20,860) | - |
Total benefits and expenses | 374,963 | 463,485 | 398,168 | 104,222 | 15,138 | 1,355,976 |
Gain arising on business combinations, acquisitions and divestitures | 6,876 | 11,833 | - | (471) | - | 18,238 |
Segment income / (loss) before taxes | 56,348 | 143,974 | 23,137 | 48,485 | (125,421) | 146,523 |
Income taxes | (9,560) | (33,237) | (4,859) | (3,155) | 109 | (50,702) |
Segment net income / (loss) from continuing operations | 46,788 | 110,737 | 18,278 | 45,330 | (125,312) | 95,821 |
Net income/(loss) attributable to shareholders - continuing operations | 39,567 | 55,742 | 18,278 | 14,310 | (91,376) | 36,521 |
Total comprehensive income/(loss) attributable to shareholders - continuing operations | 33,592 | 39,945 | 6,969 | 11,034 | (88,623) | 2,917 |
(1) During 2015, Sagicor Life USA entered into a reinsurance agreement with Sagicor Life; included in the inter-segment expenses is $1,867 relating to this transaction. |
2017 restated | Sagicor Life | Sagicor Jamaica | Sagicor Life USA | Head office and other | Adjustments | Total |
|
|
|
|
|
|
|
Net premium revenue | 308,602 | 320,067 | 86,719 | 30,244 | - | 745,632 |
Interest income | 77,450 | 159,462 | 48,842 | 8,987 | - | 294,741 |
Other investment income | 10,350 | 47,459 | 26,160 | 669 | (143) | 84,495 |
Fees and other revenues | 11,895 | 62,580 | (2,539) | 21,836 | (32) | 93,740 |
Inter-segment revenues | 12,931 | - | - | 71,150 | (84,081) | - |
Total revenue | 421,228 | 589,568 | 159,182 | 132,886 | (84,256) | 1,218,608 |
Net policy benefits | 197,716 | 171,038 | 87,606 | 27,125 | - | 483,485 |
Net change in actuarial liabilities | 11,908 | 82,334 | 26,754 | - | - | 120,996 |
Interest expense | 12,217 | 37,501 | 2,144 | 3,087 | - | 54,949 |
Administrative expenses | 68,113 | 127,855 | 28,298 | 41,320 | 1,841 | 267,427 |
Commissions and premium and asset taxes | 45,613 | 42,967 | 15,071 | 8,667 | - | 112,318 |
Finance costs | - | 1,089 | 156 | (251) | 33,752 | 34,746 |
Depreciation and amortisation | 6,437 | 9,219 | 2,491 | 3,724 | - | 21,871 |
Inter-segment expenses | 5,647(1) | 1,858 | (3,031) (1) | 12,582 | (17,056) | - |
Total benefits and expenses | 347,651 | 473,861 | 159,489 | 96,254 | 18,537 | 1,095,792 |
Gains arising on business combinations and acquisitions | - | 2,261 | - | - | - | 2,261 |
Segment income / (loss) before taxes | 73,577 | 117,968 | (307) | 36,632 | (102,793) | 125,077 |
Income taxes | (9,868) | (23,033) | 13,600 | (12) | - | (19,313) |
Segment net income / (loss) from continuing operations | 63,709 | 94,935 | 13,293 | 36,620 | (102,793) | 105,764 |
Net income/(loss) attributable to shareholders - continuing operations | 64,753 | 46,625 | 13,293 | 6,683 | (69,041) | 62,313 |
Total comprehensive income/(loss) attributable to shareholders - continuing operations | 59,864 | 76,371 | 21,355 | 6,564 | (67,718) | 96,436 |
| ||||||
(1) During 2015, Sagicor Life USA entered into a reinsurance agreement with Sagicor Life; included in the inter-segment expenses is $4,700 relating to this transaction.
|
Statement of Financial Position by Segment
Year Ended December 31, 2018
Amounts Expressed in US$000
| Sagicor Life | Sagicor Life Jamaica | Sagicor Life USA | Head office and other | Adjustments | Total |
2018 |
|
|
|
|
|
|
Financial investments | 1,418,031 | 2,344,113 | 1,499,927 | 85,592 | - | 5,347,663 |
Other external assets | 324,345 | 745,357 | 789,294 | 163,419 | (61,893) | 1,960,522 |
Assets of discontinued operation | - | - | - | 17,239 | - | 17,239 |
Inter-segment assets | 266,094 | 14,976 | 3,861 | 109,595 | (394,526) | - |
Total assets | 2,008,470 | 3,104,446 | 2,293,082 | 375,845 | (456,419) | 7,325,424 |
|
|
|
|
|
|
|
Policy liabilities | 1,297,308 | 753,793 | 1,602,601 | 70,629 | (61,893) | 3,662,438 |
Other external liabilities | 160,824 | 1,526,230 | 373,901 | 466,570 | - | 2,527,525 |
Inter-segment liabilities | 62,229 | 5,617 | 70,085 | 256,595 | (394,526) | - |
Total liabilities | 1,520,361 | 2,285,640 | 2,046,587 | 793,794 | (456,419) | 6,189,963 |
|
|
|
|
|
|
|
Net assets | 488,109 | 818,806 | 246,495 | (417,949) | - | 1,135,461 |
|
|
|
|
|
|
|
2017 restated |
|
|
|
|
|
|
Financial investments | 1,386,182 | 2,291,191 | 1,123,623 | 152,245 | - | 4,953,241 |
Other external assets | 351,871 | 531,671 | 856,271 | 182,468 | (70,990) | 1,851,291 |
Assets of discontinued operation | - | - | - | 10,110 | - | 10,110 |
Inter-segment assets | 214,767 | 13,347 | 2,505 | 62,101 | (292,720) | - |
Total assets | 1,952,820 | 2,836,209 | 1,982,399 | 406,924 | (363,710) | 6,814,642 |
|
|
|
|
|
|
|
Policy liabilities | 1,296,525 | 757,480 | 1,498,250 | 66,612 | (70,990) | 3,547,877 |
Other external liabilities | 89,643 | 1,506,669 | 194,836 | 538,394 | - | 2,329,542 |
Inter-segment liabilities | 27,285 | 4,098 | 51,587 | 209,750 | (292,720) | - |
Total liabilities | 1,413,453 | 2,268,247 | 1,744,673 | 814,756 | (363,710) | 5,877,419 |
|
|
|
|
|
|
|
Net assets | 539,367 | 567,962 | 237,726 | (407,832) | - | 937,223 |
Geographical Areas
Year Ended December 31, 2018
Amounts Expressed in US$000
The Group operates in certain geographical areas which are determined by the location of the subsidiary or branch initiating the business.
Group operations in geographical areas include certain non-current assets comprising investment property, property, plant and equipment, investment in associated companies and intangible assets.
Total external revenues and non-current assets by geographical area are summarised in the following table.
| External revenue | Non-current assets | ||
| 2018 | 2017 | 2018 | 2017 |
|
|
|
|
|
Barbados | 169,881 | 169,135 | 181,163 | 188,005 |
Jamaica | 569,284 | 558,645 | 406,327 | 133,275 |
Trinidad & Tobago | 168,967 | 173,027 | 65,927 | 65,559 |
Other Caribbean | 155,327 | 158,759 | 26,197 | 28,465 |
USA | 420,802 | 159,042 | 9,612 | 10,009 |
| 1,484,261 | 1,218,608 | 689,226 | 425,313 |
Link to Full Audited results with notes available http://www.rns-pdf.londonstockexchange.com/rns/8604W_1-2019-4-23.pdf