5 days ago
5
Sagicor Group Jamaica Limited, SGJL, anticipates uncertainty in 2025 following a one-third decline in annual profit to $9.3 billion as of December.
“While the road ahead may not be without its challenges, we are approaching the future with a clear strategy for recovery and growth,” CEO Christopher Zacca and Chairman Peter Melhado said in a joint statement to stockholders.
For 2025, the financial conglomerate and operator of Jamaica’s largest insurance company, plans to enhance customer service, and invest in talent and advanced technology while remaining open to growth opportunities.
The group recorded higher revenue of $54.5 billion for the year ended December 2024, compared to $46.8 billion in the previous year. However, this growth was offset by rising insurance expenses and impairments, including a $700 million write-down related to the underperformance of acquired business, Alliance Financial Services, where core revenue growth and margins fell below initial projections.
Sagicor Group’s main companies include Sagicor Life Jamaica Limited, Sagicor Bank, and Sagicor Investments Jamaica Limited.
Its long-term insurance segment posted revenues of $5.9 billion, supported by an increase in new business, though expenses rose to $15.3 billion due to a one-off actuarial adjustment that is not expected to recur. Short-term insurance grew to $34.7 billion in revenue, $1.4 billion in net profit, and $3.4 billion in new group health and life sales, although rising medical costs squeezed margins.
Commercial banking generated $3.8 billion in net profit for the group, driven by higher transaction volumes, $41 billion in new loans, and $14.4 billion in deposit growth, despite increased credit loss provisions.
And the investment banking segment earned $890 million in net profit, reflecting a 34 per cent improvement in net investment income to $3 billion, aided by higher interest income and improved market gains, despite elevated short-term funding rates.
Shareholder equity rose to $102.1 billion from $99.8 billion, while total assets grew by seven per cent to $597.8 billion, primarily due to a $14.1 billion increase in the commercial bank’s loan portfolio. This growth was funded by higher deposits, security liabilities, and insurance liabilities.
Sagicor Group grew its top line despite contractions in the Jamaican economy in the last two quarters of 2024. The group noted benefits from lower inflation and declining benchmark interest rates, though it observed a pause in rate reductions amid uncertainty arising from actions by the United States. SGJL cited threats of US trade sanctions, intensified deportation of illegal immigrants, and the suspension of foreign aid programmes, which have fuelled global market uncertainty.
“This volatility has resulted in a more cautious approach by central banks, including the BOJ’s pause in policy rate reductions at its February 2025 meeting. Sagicor Group Jamaica will continue to monitor the various economic and industry developments and remain conservative in our approach to managing liquidity and capital,” the financial conglomerate said.
English (US) ·