(SFI.L) Sagicor Financial Corporation Buy/Sell

RNS Number : 6123Y Sagicor Financial Corporation 07 September 2009

Sagicor Financial Corporation

Sagicor to de-list from Jamaica Stock Exchange

Sagicor Financial Corporation (SFC) has given notice to the Jamaica Stock Exchange (JSE) that it will be de-listing its shares from the board of the JSE, effective September 16, 2009.

The main reason for the decision is the insignificant trading activity in the Company's shares which did not justify the operational cost of maintaining this listing.

SFC's experience with the JSE has been a positive one. We express our gratitude to the Board, Management and Staff of both the JSE and the Jamaica Central Securities Depository (JCSD) for their assistance and cooperation over the period of listing. We remain supportive of the Jamaican market and look forward to having SFC shares traded through the Caribbean Exchange Network (CXN) in the future.

Shareholders whose shares are deposited in the Jamaica Central Securities Depository are requested to contact their Broker to arrange to have their shares transferred either to:

RNS Number : 2485Y Sagicor Financial Corporation 01 September 2009

1 September 2009

Sagicor Financial Corporation

Notice of record date for payment of interim dividend and currency conversions for TT$ and GBP

NOTICE is hereby given in accordance with the Companies Act Chapter 308 of the Laws of Barbados that the Directors of Sagicor Financial Corporation ("the Company") have by resolution declared an interim dividend of 2 cents per share United States currency (US$) on the outstanding common shares in the capital of the Company for the half-year ended June 30, 2009 to be paid on October 15, 2009 to the Shareholders and Depositary Interest Holders of record at the close of business on September 15, 2009.

NOTICE is further given that the Directors of the Company have by resolution fixed a Currency Conversion Record Date of September 15, 2009 for the purpose of determining the conversion rate for the payment of the interim dividend in:

(a) Trinidad and Tobago currency (TT$) to Shareholders resident in Trinidad
and Tobago, such currency conversion to be calculated as the average of
the exchange selling rate of the US$ into TT$ as published by the
Central Bank of Trinidad and Tobago at the close of business on the five
business days immediately precedingSeptember 15, 2009,and

(b) Pounds Sterling ("GBP") to Holders registered on the Depositary Interest
Register maintained by the Company in the United Kingdom, such currency
conversion to be calculated as the average of the spot exchange rate of
the US$ into GBP as published by the Bank of England at the close of
business on the five business days immediately precedingSeptember 15,
2009.

Shares will trade "ex div" from September 11, 2009. Only those Shareholders and Depositary Interest Holders of record on September 15, 2009 will be entitled to receive the Interim Dividend.

By Order of the Board of Directors

Sandra Osborne, QC

Corporate Secretary

Enquiries:

Sagicor +1 (246) 467 7500
Dodridge Miller, President and CEO

Melba Smith, Vice President Corporate Communications
Numis +44 (0) 20 7260 1000
Charles Farquhar

College Hill +44 (0) 20 7457 2020
Richard Pearson
Tony Friend

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 2482Y
  Sagicor Financial Corporation
  01 September 2009
   

1 September 2009

Sagicor Financial Corporation

Final results for the six months ended 30, June 2009

Financial Highlights

 FINANCIAL HIGHLIGHTS                        30-Jun-09   30-Jun-08
 Group net income                            US$ 40.4m   US$ 45.4m
 Net income attributable to shareholders     US$ 23.0m   US$ 33.3m
 Annualized return on shareholders' equity      10.10%      15.10%
 Shareholders' equity                       US$ 483.4m  US$ 461.5m
 Revenue                                    US$ 587.0m  US$ 461.7m

Chairman's Statement

The Sagicor Group of companies recorded another commendable performance for the six months ended June 30th 2009. Group net income for the period amounted to US $40.4 million, compared to US $45.4 million for the corresponding period in 2008. Net income attributable to shareholders was US $23.0 million compared to US $33.3 million for 2008. Allowing for the acquisition gain on Barbados Farms of US $4.6 million, and the uplift in investment income from the sale of the RBTT shares of approximately US $5 million in 2008, the 2009 performance compares favorably with the previous year.

Earnings per share was 8.3 US cents (compared to 12.1 US cents in 2008), and the annualized return on shareholders' equity was 10.1%, against 15.1% for 2008.

Our Caribbean Operations including Jamaica and the Netherland Antilles recorded solid performances in an increasingly challenging environment. These operations generated net income to shareholders of US $38.9 million, level with same period in 2008 of US $39.8 million.

Our international division which includes our USA and UK operations and our Property & Casualty business generated an operating profit of US $5.3 million for the period. This was slightly ahead of expectation and better than 2008 by US $2.4 million. The USA operations contributed a small profit in line with expectation. However, consistent with many UK syndicates operating within the Lloyds markets, which write dollar denominated insurance business, Sagicor at Lloyds recorded a foreign exchange translation loss of US $9.4 million. This reduced the net operating income of the international division to a net loss of US $4.1 million. The translation loss is an accounting entry only, and has no cash flow or economic impact on the operating performance of the syndicate. These foreign exchange translation differences are expected to even themselves out over time as they result from non monetary assets and liabilities being recorded at historical rates, but related monetary assets and liabilities being translated at current rates.

Total revenue for the Sagicor Group for the six months amounted to US $587.0 million compared to US $461.7 million; an increase of 27%. Net premium revenue reached US $416.0 million, 46% above the amount for the same period in 2008. Strong new business growth from the USA and UK, together with the positive impact of the acquisition of the business of Blue Cross in Jamaica at the end of 2008 accounted for the significant growth in net premium revenue.

Net investment and other income at US $171.0 million was level with 2008, reflecting the lower investment yields consistent with the challenging investment environment.

Benefits and expenses for the period under review reached US $540.1 million, up by 33% from US $406.7 million in 2008. Benefits increased by 49% reflecting the increased business from the USA and UK operations and the acquisition of the business of Blue Cross in Jamaica. Expenses increased by 9% over 2008, reflecting the growth in the operating activity of the Group.

One significant feature of the period was the continuing reversal of mark-to-market losses on available for sale financial assets. For the six months under review there was an unrealized net increase in the fair value of investment assets of US $26.1 million. This is to be compared to unrealized fair value losses of US $27.7 million for the same period last year. These are positive signs that the financial markets are stabilizing as the effect of the financial crisis and the global recession begin to ease internationally. We continue to record foreign exchange translation losses on our Jamaica operations as the Jamaica dollar depreciated further against the US dollar. Total comprehensive net income for the period amounted to US $52.9 million compared to a comprehensive net loss of US $5.0 million for 2008.

Total assets reached US $4.2 billion, up from US $3.9 billion as at December 31st 2008, of which 69% are held in respect of our Caribbean operations and 31% held in respect of the USA and the UK. Total equity increased to US $624.1 million compared to US $581.6 million at the end of 2008.

During the period, the economic environment in the Caribbean became increasingly challenging as the region began to experience the impact of the global recession. Many regional Governments have signaled their intention to seek balance of payment support from the International Monetary Fund (IMF) as the fiscal positions across the region deteriorate. Both the Government of Jamaica and the Government of Barbados have had their international ratings downgraded by Standard & Poor's (S&P). Jamaica has suffered two downgrades during the period and now stands at CCC+, while Barbados has suffered a downgrade from BBB+ to BBB. Trinidad and Tobago, which remains the strongest economy in the region, has had its rating outlook changed to "negative". As a result of these Country rating changes, Sagicor, which operates in all of these teritories has had its rating changed from BBB+ to BBB in line with its sovereign Barbados. Our rating has been further impacted with an outlook change to negative following the further downgrade of Jamaica; this despite consistent profitable operating performance and continued strong capitalization.

As an insurance company operating in the Caribbean, Sagicor is required by law to invest substantially in the bonds and other instruments issued by the Governments of the countries in which we operate. This is not unexpected as the funds available for investments are seen as part of the national savings which should be available to fund the economic development of the country. However, this naturally exposes our Group to the vagaries of the economic performances of these countries. We continue to address this business risk through expansion and geographic diversification.

We expect the region to continue to be challenged by economic conditions for the remainder of 2009 and perhaps well into the next year. We remain committed to the development of the communities in which we operate while delivering competitive returns to our stakeholders. In this regard, we are also committed to the orderly development of our international operations, particularly in the USA and the UK. We believe that this will be to the long-term benefit of all of our stakeholders.

Terrence A Martins
Chairman

August 24, 2009

Enquiries:

 Sagicor                                                 +1 (246) 467 7500
   Dodridge Miller, President and CEO 
   Melba Smith, Vice President Corporate Communications
 
 Numis                                                   +44 (0) 20 7260 1000
   Charles Farquhar
 
 College Hill                                            +44 (0) 20 7457 2020
   Richard Pearson
   Tony Friend

Consolidated statement of financial position

 Amounts expressed in US $000       30-Jun     31-Dec
                                      2009       2008
                               (unaudited)  (audited)
 ASSETS
 Financial investments           3,015,094  2,879,466
 Other investments and assets    1,227,280  1,099,850
 Total assets                    4,242,374  3,979,316

 LIABILITIES
 Policy liabilities              2,287,296  2,103,247
 Other liabilities               1,330,957  1,294,422
 Total liabilities               3,618,253  3,397,669

 EQUITY
 Shareholders' equity              483,383    447,751
 Participating accounts             13,842     12,499
 Minority interest                 126,896    121,397
 Total equity                      624,121    581,647
 Total liabilities and equity    4,242,374  3,979,316

Consolidated income statement 

 Amounts expressed in US $000            Six months ended        Three months ended
                                     June 30      June 30      June 30      June 30
                                        2009         2008         2009         2008
                                 (unaudited)  (unaudited)  (unaudited)  (unaudited)
 REVENUE
 Net premium revenue                 415,972      285,803      249,788      146,864
 Net investment and other            171,002      171,281       87,231       89,896
 income
 Net gains arising on                      -        4,645            -        (459)
 acquisitions
 Total revenue                       586,974      461,729      337,019      236,301

 BENEFITS AND EXPENSES
 Benefits                            360,013      242,194      225,598      124,134
 Expenses                            180,078      164,502       86,037       81,514
 Total benefits and expenses         540,091      406,696      311,635      205,648

 INCOME FROM ORDINARY                 46,883       55,033       25,384       30,653
 ACTIVITIES
 Income taxes                        (6,480)      (9,584)      (2,746)      (5,225)
 NET INCOME FOR THE PERIOD            40,403       45,449       22,638       25,428

 NET INCOME ATTRIBUTABLE TO:
 Shareholders                         23,041       33,291       12,503       19,792
 Participating policyholders           1,601        (411)        2,422        (678)
 Minority interest                    15,761       12,569        7,713        6,314
                                      40,403       45,449       22,638       25,428
 Net income attributed to
 shareholders - EPS
 Basic earnings per common         8.3 cents   12.1 cents    4.5 cents    7.1 cents
 share
 Fully diluted earnings per        8.3 cents   12.0 cents    4.5 cents    7.1 cents
 common share

Consolidated statement of comprehensive income

 Amounts expressed in US $000        Six months ended         Three months ended
                                         June 30                   June 30
                                        2009         2008         2009         2008
                                 (unaudited)  (unaudited)  (unaudited)  (unaudited)
 NET INCOME FOR THE PERIOD            40,403       45,449       22,638       25,428

 OTHER COMPREHENSIVE INCOME
 Changes in fair value
 reserves:
 Owner occupied property                   -          891            -         -213
 Available for sale financial         22,195     (48,743)       35,032     (20,472)
 assets
 Cash flow hedges                        234            -          -10            -
                                      22,429     (47,852)       35,022     (20,685)
 Retranslation of foreign            (9,910)      (2,617)        9,451        (803)
 currency operations
 Other items                               -          (3)            -          (3)
 OTHER COMPREHENSIVE INCOME FOR       12,519     (50,472)       44,473     (21,491)
 THE PERIOD

 TOTAL COMPREHENSIVE INCOME FOR       52,922      (5,023)       67,111        3,937
 THE PERIOD

 TOTAL COMPREHENSIVE INCOME
 ATTRIBUTABLE TO:
 Shareholders                         41,194      (7,027)       51,455            2
 Participating policyholders           1,474        (441)        2,419        (697)
 Minority interest                    10,254        2,445       13,237        4,632
                                      52,922      (5,023)       67,111        3,937

Consolidated statement of changes in equity

 Amounts expressed in US $000
                                           Six months ended June 30, 2009 (unaudited)
                                   Share            Retained  Participating  Minority
                                 Capital  Reserves  Earnings       Accounts  Interest     Total
 Balance, beginning of period    258,153  (85,272)   274,870         12,499   121,397   581,647
 Total comprehensive income for        -    18,153    23,041          1,474    10,254    52,922
 the period
 Issue of shares                       -         -         -              -       383       383
 Dividends declared                    -         -   (5,553)              -   (5,138)  (10,691)
 Other movements                       -      (35)        26          (131)         0     (140)
 Balance, end of period          258,153  (67,154)   292,384         13,842   126,896   624,121

                                           Six months ended June 30, 2008 (unaudited)
                                   Share            Retained  Participating  Minority
                                 Capital  Reserves  Earnings       Accounts  Interest     Total
 Balance, beginning of period    231,695    21,735   201,744          9,396   122,137   586,707
 Total comprehensive income /          -  (40,315)    33,288          (441)     2,445   (5,023)
 loss for the period
 Issue of shares                  25,800         -         -              -     1,222    27,022
 Minority interest acquired            -         -         -              -    13,484    13,484
 Purchase of treasury shares     (2,624)         -         -              -         -   (2,624)
 Dividends declared                    -         -  (11,087)              -   (6,005)  (17,092)
 Other movements                       -       757       529          (131)   (1,620)     (465)
 Balance, end of period          254,871  (17,823)   224,474          8,824   131,663   602,009

Consolidated statement of cash flows

 Amounts expressed in US $000                        Six months ended
                                                         30 June

                                                        2009         2008
                                                 (unaudited)  (unaudited)
 CASH FLOWS
 Operating activities                                 96,123       30,366
 Investing activities                                (6,643)      (4,856)
 Financing activities                                (2,617)        (603)
 Effects of exchange rate changes                      6,962          971
 Net change in cash and cash equivalents              93,825       25,878
 Cash and cash equivalents, beginning of period      226,852      113,492
 Cash and cash equivalents, end of period            320,677      139,370

Note to the financial statement

1. Basis of preparation

These condensed interim financial statements have been prepared in accordance with the accounting policies set out in note 2 of the December 31, 2008 audited financial statements.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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