BUSINESS MONDAY: Sagicor Group maintains solid performance
SAGICOR has said that its acquisition of 60 per cent Advantage General Insurance Company Limited, domiciled in Jamaica, has had no impact on its financial results for the period to September 30, 2019.
At the same time, Chairman Stephen McNamara said Sagicor will not be going ahead with the acquisition of Scotiabank Insurance of Jamaica at this time. These developments came as Mr. McNamara announced that the Sagicor Group has maintained a solid performance for the nine months to September 2019.
The Chairman said that in November 2018, Sagicor had announced its intention to acquire Scotia Jamaica Life Insurance Company Limited and Scotia Life Trinidad and Tobago.
“Sagicor and the Bank of Nova Scotia Jamaica Limited have mutually agreed not to proceed with the 20-year distribution for insurance products and solutions in Jamaica,” the Chairman explained.
He noted further that Sagicor Alignvest Acquisition II Corporation and Scotiabank Trinidad and Tobago remain parties to a share purchase agreement dated November 27, 2018. This is pursuant to which Sagicor agreed to establish a 20-year distribution agreement for insurance products and solutions in Trinidad and Tobago, and acquire all of the issued and outstanding shares in the capital of Scotiabank Insurance Trinidad and Tobago, subject to the satisfaction of certain conditions precedent.
According to Mr. McNamara, “Sagicor continues to pursue the transactions contemplated in the Trinidad SPA.”
In the meantime, the Chairman reported that Sagicor’s Group net income closed the period at Bds$159.0 million against a prior year result of Bds$118.0 million. Net income attributable to shareholders from continuing operations was Bds$65 million, compared to the prior year’s result of Bds$57.0 million.
“Net income to shareholders from continuing operations in 2018 included the impact of a provision on the Government of Barbados debt and was partially offset by certain one-time positive earnings releases,” McNamara stated.