Sagicor Financial Company (SFC) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly core earnings to shareholders of $29.7M in Q1 2025, up over 100% year-over-year, with strong performance across all major segments and improved corporate funding costs.

• Net income to shareholders was $6.7M, down 74% year-over-year, reflecting market-related impacts and non-core items.

• Caribbean segments expanded margins and grew core earnings year-over-year; US business saw over $400M in new annuity production; Canadian segment delivered robust profitability.

• Strategic initiatives advanced, including technology modernization, capital efficiency, and operational collaboration to lower expenses and drive growth.

• Sagicor operates in 19 countries, focusing on life, health, annuities, pensions, and related products, with a balance sheet 75% weighted to Canada and the US.

Financial highlights

• Q1 core earnings to shareholders rose over 100% year-over-year to $29.7M; net income to shareholders was $6.7M.

• Revenues reached $648M in Q1 2025; total assets at $23.2B as of Q1 2025.

• New business CSM was $46.1M, reflecting strong sales across all segments.

• Book value per share ended at US$7.05; deployable capital was $2B (US$15.01 per share).

• Core basic EPS rose to 21.9¢ from 9.6¢ year-over-year; core ROE annualized at 12.4%.

Outlook and guidance

• Positioned to meet or exceed the $1B annuity sales target for 2025, with Q1 annuity production above $400M.

• 2025 new business CSM target: $180–$200M; core basic EPS guidance: 74.00 to 80.00, targeting 10%+ growth.

• Management targets for 2025 remain on track, with strong positioning to manage market volatility.

• Q1 performance supports potential upside to core EPS target of $0.80 per share, but guidance will be revisited after Q2.

• Confident in sustaining growth in shareholder returns despite macroeconomic uncertainty.