Sagicor Financial : SFCL Financial Statements

SAGICOR FINANCIAL COMPANY LTD.

Condensed Consolidated Financial Statements (Unaudited)

Three-months ended March 31, 2024

SAGICOR FINANCIAL COMPANY LTD.

ACRONYMS

Certain acronyms have been used throughout the financial statements and notes thereto to substitute phrases. The more frequent acronyms and associated phrases are set out below.

Acronym	Phrase
AC	Amortised Cost
CSM	Contractual Service Margin
ECL	Expected Credit Losses
FCF	Fulfilment Cash Flows
FVTOCI	Fair Value Through Other Comprehensive Income
FVTPL	Fair Value Through Profit and Loss
GMM	General Measurement Model
IAS	International Accounting Standards
IASB	International Accounting Standards Board
IFRS	IFRS Accounting Standards
LGD	Loss Given Default
LIC	Liability for Incurred Claims
LRC	Liability for Remaining Coverage
OCI	Other Comprehensive Income
PAA	Premium Allocation Approach
PD	Probability of Default
POCI	Purchase or Originated Credit-Impaired
SICR	Significant Increase in Credit Risk
SOFR	Secured Overnight Financing Rate
VFA	Variable Fee Approach

SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
		As of	As of
Amounts in US $000	March 31, 2024	December 31, 2023
(unaudited)	(audited)
ASSETS
Cash	449,528	486,642
Restricted cash	96,716	95,564
Financial investments (note 4)	16,382,985	16,337,358
Financial investments repledged (note 4)	694,627	687,753
Reinsurance contract assets (note 5)	3,064,595	3,212,899
Insurance contract assets (note 5)	9,167	1,273
Miscellaneous assets and receivables	285,266	297,858
Income tax assets	325,573	331,375
Associates and joint ventures	68,938	67,817
Intangible assets	92,725	93,160
Investment property	83,744	85,375
Property, plant and equipment	194,776	195,541
Segregated funds assets (note 8)	482,786	492,271
Total assets
22,231,426	22,384,886
LIABILITIES
Accounts payable and accrued liabilities	292,846	293,782
Income tax liabilities	18,429	30,380
Investment contract liabilities (note 5)	473,867	477,858
Reinsurance contract liabilities (note 5)	16,092	14,800
Insurance contract liabilities (note 5)	15,622,024	15,732,214
Deposit and security liabilities (note 6)	2,965,776	2,950,430
Lease liabilities	38,443	37,987
Notes and loans payable (note 7)	944,807	945,666
Other liabilities / retirement benefit liabilities	66,840	80,477
Insurance contract liabilities on account of segregated fund	482,786	492,271
policyholders (note 8)
Total liabilities	20,921,910	21,055,865
EQUITY
Share capital	1,407	1,409
Share premium	724,216	725,029
Reserves	(96,424)	(73,417)
Retained earnings	335,226	317,913
Total shareholders' equity	964,425	970,934
Non-controlling interests	345,091	358,087
Total equity	1,309,516	1,329,021
Total liabilities and equity		22,231,426	22,384,886

These consolidated financial statements have been approved for issue by the Board of Directors on May 10, 2024.

Director

Director

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD. CONDENSED CONSOLIDATED STATEMENT OF INCOME

Amounts in US $000

Insurance revenue (note 9)

Insurance service expenses (note 9)

Net expense from reinsurance contracts held (note 9)

INSURANCE SERVICE RESULT (note 9)

Gain / (loss) on derecognition of amortised cost investments (note 10) Gain / (loss) on derecognition of assets carried at FVTOCI (note 10)

Interest income earned from financial assets measured at amortised cost and FVTOCI (note 10)

Credit impairment recovery / (loss) (note 10)

Net gain / (loss) on FVTPL investments (note 10) Other investment income / (loss) (note 10)

NET INVESTMENT INCOME (note 10)

Finance income / (expenses) from insurance contracts issued (note 10) Finance income / (expenses) from reinsurance contracts held (note 10)

NET INSURANCE FINANCE EXPENSES (note 10)

NET INVESTMENT RESULT BEFORE SEGREGATED FUNDS

Net investment income / (expenses) for segregated funds (note 8)

Finance income / (expenses) from insurance contracts issued for segregated funds (note 8)

NET INVESTMENT RESULT FOR SEGREGATED FUNDS (note 8)

TOTAL INVESTMENT RESULT (note 10)

NET INSURANCE AND INVESTMENT RESULT

Fees and other income

Share of income of associates and joint ventures

Other operating expenses (note 11)

Other interest and finance costs

INCOME BEFORE TAXES

Income taxes

NET INCOME FOR THE PERIOD

Three months to	Three months to
March 31, 2024	March 31, 2023
(unaudited)	(unaudited)
355,219	166,201
(288,638)	(136,716)
(36,838)	(27,190)
29,743	2,295
(43)	-
787	(616)
62,566	49,805
74	(772)
185,001	170,247
922	982
249,307	219,646
(69,983)	(145,786)
(57,966)	12,032
(127,949)	(133,754)
121,358	85,892
25,269	-
(25,269)	-
-	-
121,358	85,892
151,101	88,187
34,797	32,464
1,186	471
(83,717)	(74,040)
(57,230)	(30,071)
46,137	17,011
(16,532)	(7,827)
29,605	9,184

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF INCOME

	Three months to	Three months to
	March 31, 2024	March 31, 2023
Amounts in US $000	(unaudited)	(unaudited)
NET INCOME FOR THE PERIOD	29,605	9,184
Net income is attributable to:

Common shareholders

Non-controlling interests

Earnings per common share (note 16): Basic earnings per common share

Fully diluted earnings per common share

26,2481,409

3,3577,775

29,6059,184

18.6 cents	1.0 cent
18.2 cents	1.0 cent

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amounts in US $000

NET INCOME FOR THE PERIOD

OTHER COMPREHENSIVE INCOME / (LOSS):

Items net of tax that may be reclassified subsequently to income:

Financial assets measured at FVTOCI: Gain / (loss) on revaluation

(Gain) / loss transferred to income Retranslation of foreign currency operations

Items net of tax that will not be reclassified subsequently to income:

Three months to	Three months to
March 31, 2024	March 31, 2023
(unaudited)	(unaudited)
29,605	9,184

(8,435)6,956

(516)1,058

(20,114)1,860

(29,065)9,874

Gain arising on revaluation of owner-occupied property and owner-managed property

Gain / (loss) on defined benefit plans

Other items

Other comprehensive income / (loss)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

Total comprehensive income is attributable to:

16-

32829

3-

34729

(28,718)9,903

88719,087

Common shareholders	1,549	6,611
Non-controlling interests	(662)	12,476
	887	19,087

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Share	Share	Reserves	Retained	Total
		Capital	Premium	Earnings	Shareholders'
						Equity
Amounts in US $000	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Three months to March 31, 2024
Balance as at January 1, 2024	1,409	725,029	(73,417)	317,913	970,934
Total comprehensive income	-	-	(25,030)	26,579	1,549
Transactions with holders of equity instruments:
Repurchase of shares (note 17)	(2)	(848)	-	70	(780)
Movements in treasury shares	-	35	-	-	35
Changes in reserve for equity	-	-	953	-	953
compensation benefits
Dividends declared	-	-	-	(8,450)	(8,450)
Transfers and other movements	-	-	1,070	(886)	184
Balance as at March 31, 2024	1,407	724,216	(96,424)	335,226	964,425

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Total Shareholders'	Non-controlling	Total Equity
		Equity	Interests
Amounts in US $000	(unaudited)	(unaudited)	(unaudited)
Three months to March 31, 2024
Balance as at January 1, 2024	970,934	358,087	1,329,021
Total comprehensive income	1,549	(662)	887
Transactions with holders of equity instruments:
Repurchase of shares (note 17)	(780)	-	(780)
Movements in treasury shares	35	-	35
Changes in reserve for equity compensation	953	(34)	919
benefits
Dividends declared	(8,450)	(12,288)	(20,738)
Transfers and other movements	184	(12)	172
Balance as at March 31, 2024	964,425	345,091	1,309,516

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Share	Share	Reserves	Accumulated	Total
		Capital	Premium	Deficit	Shareholders'
						Equity
Amounts in US $000		(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Three months to March 31, 2023
Restated balance as at December 31, 2022	1,426	734,922	(115,441)	(191,216)	429,691
Total comprehensive income	-	-	5,173	1,438	6,611
Transactions with holders of equity instruments:
Repurchase of shares (note 17)	-	(341)	-	97	(244)
Movements in treasury shares	(2)	(1,000)	-	-	(1,002)
Changes in reserve for equity	-	-	1,419	-	1,419
compensation benefits
Dividends declared	-	-	-	(8,024)	(8,024)
Transfers and other movements	-	-	1,769	(1,917)	(148)
Balance as at March 31, 2023	1,424	733,581	(107,080)	(199,622)	428,303

The accompanying notes form an integral part of these financial statements.

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SAGICOR FINANCIAL COMPANY LTD.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Total Shareholders'	Non-controlling	Total Equity
		Equity	Interests
Amounts in US $000	(unaudited)	(unaudited)	(unaudited)
Three months to March 31, 2023
Restated balance as at December 31, 2022	429,691	306,733	736,424
Total comprehensive income	6,611	12,476	19,087
Transactions with holders of equity instruments:
Repurchase of shares (note 17)	(244)	-	(244)
Movements in treasury shares	(1,002)	-	(1,002)
Changes in reserve for equity compensation	1,419	-	1,419
benefits
Dividends declared	(8,024)	(9,385)	(17,409)
Transfers and other movements	(148)	-	(148)
Balance as at March 31, 2023	428,303	309,824	738,127

The accompanying notes form an integral part of these financial statements.

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