Sagicor Financial Company (SFC) Q1 2026 earnings summary

Executive summary

• Core earnings to shareholders were $24.9 million, down 16% year-over-year, impacted by $8 million of negative core insurance experience, mainly due to higher mortality in North America, which is typically observed in Q1.

• Net loss to shareholders was $34.4 million for Q1 2026, driven by $49 million of market experience losses from lower asset prices in U.S. and Canadian fixed income and equity markets, partially offset by liability revaluations and one-time items.

• Strategic initiatives are progressing, including the appointment of Eric Sandberg as President of the U.S. subsidiary and ongoing Caribbean business integration.

• The company operates in 19 countries, focusing on life, health, annuities, pensions, and property & casualty insurance, with a balance sheet 75% weighted to Canada and the US.

• Since its TSX listing in 2019, the company has demonstrated sustainable growth, profitability, and capital returns.

Financial highlights

• Total assets reached $25.2 billion as of Q1 2026, up from $8.7 billion at TSX listing.

• Core earnings to shareholders were $138 million LTM Q1 2026; net income to shareholders was $272 million.

• Book value per share was $7.18 (US$) and C$10.01; deployable capital per share was C$21.57.

• Group LICAT ratio stood at 134%, and financial leverage ratio at 27.5%.

• 26th consecutive quarterly dividend declared at $0.075 per share ($0.30 annualized), with a forward dividend yield of 5.0%.

Outlook and guidance

• Management reiterates a core ROE run rate of approximately 13%, with 2027 and 2028 targets at 14% and 15%, respectively.

• Growth levers are expected to add 1–2% to core ROE over the next 3–5 years.

• Q2 is expected to benefit from normalization of mortality and positive market movements, particularly in equities.

• Core dividend payout ratio is expected to remain at 30–40%.