Sagicor Financial Reports Second Quarter 2025 Results

Executive Summary

• Sagicor Financial reported its second quarter 2025 results, posting core earnings to shareholders of $46.0 million, a significant increase from $25.3 million in Q2 2024.
• The company reported a reported net loss to shareholders of $6.4 million due to non-core mark-to-market volatility and currency impacts, though total comprehensive income was $39.8 million.
• Sagicor updated its full-year 2025 guidance, expecting core earnings to shareholders between $120 million and $130 million, and new business CSM between $155 million and $175 million.

Key Details

• Core Earnings: $46.0 million for Q2 2025 (up 82% year-over-year from $25.3 million); Year-to-Date (YTD) core earnings were $75.7 million (up 95% from $38.9 million).
• Core Basic EPS: 33.9₵ for Q2 2025 (up 89% from 17.9₵); YTD core basic EPS was 55.8₵ (up >100% from 27.6₵).
• Net Income/Loss: Reported net loss to shareholders was $6.4 million for Q2 2025 (compared to a loss of $40.2 million in Q2 2024); YTD net income was $0.3 million.
• Comprehensive Income: Total comprehensive income to shareholders was $39.8 million for Q2 2025.
• Profitability Metrics:
  • Core Return on Shareholders' Equity (annualised): 18.9% (up from 10.9% in Q2 2024).
  • Shareholders' Equity: $990.3 million, with book value per share of US$7.29.
  • Shareholders' Equity plus Net CSM to Shareholders: $2.1 billion, or US$15.63 per share.
  • Financial Leverage Ratio: 27.1%.
  • Group LICAT Ratio: 141%.
• New Business CSM: $39.2 million for Q2 2025 (down 2% from $40.1 million); YTD new business CSM was $85.3 million (up 4% from $82.2 million).
• Segment Performance (Core Earnings to Shareholders):
  • Sagicor Canada: $24.6 million (down 5% Y/Y); Revenues $298.0 million (up 14% Y/Y).
  • Sagicor Life USA: $16.3 million (up >100% Y/Y); Revenues $135.3 million (up 52% Y/Y). Assets surpassed $6 billion.
  • Sagicor Jamaica: $14.6 million (up 54% Y/Y); Revenues $198.5 million (up 19% Y/Y).
  • Sagicor Life: $15.5 million (up 89% Y/Y); Revenues $124.1 million (up 27% Y/Y).
  • Head Office: Core loss of $25.0 million (improved $1.0 million Y/Y due to lower interest costs).
• Dividend: Board declared a quarterly dividend of US$0.0675 per common share, payable September 17, 2025, to shareholders of record on August 27, 2025.
• Share Repurchases: Repurchased 25,200 shares cancelled in Q2 for approximately US$0.1 million. Issued and outstanding shares as of June 30, 2025: 135,891,504.
• Outlook:
  • 2025 Core Earnings to Shareholders: $120 million – $130 million.
  • 2025 New Business CSM: $155 million – $175 million.

Notable Quotes

• "We are pleased to report an outstanding operational quarter for the period ended June 2025. All of our operating segments generated excellent insurance results, resulting in record core earnings(1) to shareholders. New business production(1) was solid across each of our segments. Our U.S. subsidiary continued to grow and surpassed $6 billion of total assets for the first time. Our Canadian business continued to show strong profitability and its contribution reflected the benefit of a recovery in the Canadian dollar. And both of our Caribbean segments showed robust profitability, reflecting the progress the team has made in our initiatives to enhance those businesses." — Andre Mousseau, President and Chief Executive Officer