Sagicor Financial Company (SFC) Q3 2024 earnings summary

Executive summary

• Net income attributable to shareholders reached $59.1 million in Q3 2024, driven by positive market experience, strong segment performance, and the Sagicor Canada acquisition.

• Core earnings to shareholders were $24.1 million, up 149% year-over-year, reflecting the impact of acquisitions and segment growth.

• Book value per share rose to $6.86 USD, a 120% increase year-over-year.

• Growth initiatives, Sagicor Canada integration, debt refinancing, and share repurchases are progressing as planned.

• $18.7 million was returned to shareholders in Q3 through dividends and share repurchases.

Financial highlights

• Revenues for Q3 2024 were $1,130.1 million, up from $291.2 million in Q3 2023.

• New business CSM was $44.8 million, up 77% year-over-year.

• Book value per share ended the quarter at $6.86 USD (CAD 9.26).

• Deployable capital (shareholders' equity plus net CSM) totaled $2.1 billion, or $14.99 per share USD.

• Net premium for Q3 2024 was $583 million.

Outlook and guidance

• Expectation for continued volatility in reported net income due to IFRS 17 accounting, but long-term convergence with core net income.

• Management expects continued growth in return on shareholders' equity in 2025 and beyond, supported by ongoing integration and optimization efforts.

• U.S. business is positioned to exceed $1 billion in new business in 2025, with positive ROE trajectory.

• Q4 production expected to be softer due to recent interest rate movements, but 2025 outlook remains strong.

• Capital position remains strong with continued capital generation and stable adequacy metrics.