Declaring half-year dividends of US $3.25 per preference share and US $0.20 per common share Sagicor Financial Corporation, in its financial results for the nine months ended September 30, reported after tax profits of $38,596,000. This after profit represents a 90 per cent increase compared to 2011.
But its cash and cash equivalents decreased at the end of September 2012 compared to the corresponding period in 2011. There was a decrease of 12 per cent as cash moved from $241,711,000 in 2011 to $212,255,000 in 2012.
According to chairman Stephen McNamara, in his report, "Sagicor maintained its ratings even though many Caribbean jurisdictions face significant fiscal and economic challenges. Together with marginal economic growth in North America, Europe and the Caribbean, above normal unemployment levels throughout, inflationary pressures in the Caribbean and low interest rates in the USA, UK and T&T, the external environment for the group is very challenging."
Despite the challenging external environment, Sagicor continues to do well. "Sagicor continues to write good volumes of new business premium and to achieve consistent levels of retention on its life, health and annuity insurance business," McNamara said. Also expressed in the consolidated statement of income is its shareholding in Jamaica.
"Sagicor retains a 51 per cent shareholding in Sagicor Life Jamaica. Also during the third quarter, Sagicor's subsidiary in the USA acquired PEMCO Life Insurance Company, a Washington State-based life insurance company with 7,500 policyholders. This transaction generated a gain of US $2.4 million, which has been reflected in the consolidated statement of income."