Sagi­cor Fi­nan­cial Com­pa­ny (SFC), yes­ter­day re­port­ed net in­come to share­hold­ers of US$115.6 mil­lion for the fi­nan­cial year end­ed De­cem­ber 31, 2022. That was 13 per cent less than the US$133.2 mil­lion the Bar­ba­dos-head­quar­tered, Toron­to Stock Ex­change-list­ed fi­nan­cial ser­vices com­pa­ny re­port­ed in 2021.

Sagi­cor Fi­nan­cial re­port­ed rev­enue of US$2.54 bil­lion in its 2022 fi­nan­cial year, which was an 8 per cent in­crease over the US$2.35 bil­lion the com­pa­ny gen­er­at­ed in 2021.

The com­pa­ny record­ed earn­ings per share of US$0.809 per share. It will pay a div­i­dend of US$0.05625 per com­mon share on April 27, 2023, to share­hold­ers of record at the close of busi­ness on April 4, 2023. The com­pa­ny’s an­nu­alised div­i­dend is US$0.225.

Sagi­cor’s group pres­i­dent and CEO, Do­dridge Miller said: “Last year, 2022, was an­oth­er strong year for Sagi­cor, with the Group de­liv­er­ing $116 mil­lion of net in­come to our share­hold­ers.

“Prof­itabil­i­ty dur­ing the year was sup­port­ed by strong per­for­mances by our op­er­at­ing seg­ments. The macro­eco­nom­ic back­drop and as­set volatil­i­ty in 2022 al­lowed us grow top line pre­mi­ums and in­vest in high­er yields, par­tic­u­lar­ly in the US. “We con­tin­ued to ex­e­cute on our growth plan for Sagi­cor Life USA, grow­ing that seg­ment to US$1.3 bil­lion of rev­enue and US$140 mil­lion of net in­come to share­hold­ers.”

In Jan­u­ary, Sagi­cor an­nounced the re­tire­ment of Miller, and the ap­point­ment of An­dre Mousseau as the com­pa­ny’s new CEO, ef­fec­tive April 1.

Miller said he has worked very close­ly with Mousseau over the last four years, and he is ex­cit­ed as Mousseau leads Sagi­cor through the next phase of its de­vel­op­ment.

In com­ments on Sagi­cor’s 2022 per­for­mance, Mousseau de­scribed it as a “pro­duc­tive year, par­tic­u­lar­ly with strong pro­duc­tion in the US, an­nounc­ing the trans­for­ma­tion­al ac­qui­si­tion of ivari, and work­ing to­wards IFRS 17 im­ple­men­ta­tion.”

On Au­gust 25, 2022, Sagi­cor an­nounced that it en­tered in­to a de­fin­i­tive agree­ment to ac­quire ivari, a lead­ing mid­dle-mar­ket in­di­vid­ual life in­sur­er in Cana­da with over 80 years of his­to­ry in the re­gion.

In an­nounc­ing the ac­qui­si­tion, Sagi­cor said it would be fi­nanced in part with US$320 mil­lion of debt fi­nanc­ing, which has a float­ing in­ter­est rate, but which is as­sumed to be con­stant at cur­rent rates.

“We con­tin­ue to track well for a mid-2023 clos­ing of the ivari trans­ac­tion as we work through reg­u­la­to­ry and oth­er cus­tom­ary clos­ing con­di­tions, and its busi­ness fun­da­men­tals have con­tin­ued to per­form well,” said Mousseau, adding: “Sagi­cor has grown to be­come a mul­ti-na­tion­al cor­po­ra­tion thanks to Do­dridge’s vi­sion and lead­er­ship and Sagi­cor will con­tin­ue to ben­e­fit from the foun­da­tion that he laid and his con­tin­ued con­tri­bu­tions as a di­rec­tor of Sagi­cor in the years to come.”

On the is­sue of IFRS 17, a new ac­count­ing stan­dard that came in­to ef­fect on Jan­u­ary 1, 2023, Sagi­cor said it is not ex­pect­ed to have a ma­te­r­i­al im­pact on our over­all busi­ness strate­gies.

“The changes in mea­sure­ment of in­sur­ance con­tract li­a­bil­i­ties and tim­ing of recog­ni­tion of earn­ings up­on tran­si­tion will change the pre­sen­ta­tion of the fi­nan­cials. Sagi­cor is in process of fi­nal­is­ing the cal­cu­la­tions of the im­pacts,” Sagi­cor said.