Sagicor Financial Company (SFC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income attributable to shareholders reached $59.1 million, reversing a prior loss and driven by positive market experience, accounting effects under IFRS 17, and strong segment performance.

• Core earnings to shareholders were $24.1 million, more than double the prior year, reflecting the impact of the Sagicor Canada (ivari) acquisition and segment growth.

• Revenues for Q3 2024 totaled $1,130.1 million, up 86% year-over-year, with net premium of $583.1 million.

• Book value per share increased to $6.86 USD, and net CSM to shareholders per share rose to $8.13.

• Growth initiatives, Sagicor Canada integration, debt refinancing, and share repurchases are progressing as planned to support future ROE improvement.

Financial highlights

• Revenues for Q3 2024 were $1,130.1 million, with YTD revenues at $2,375.7 million, up from $1,022.4 million YTD 2023.

• Net income to shareholders for Q3 was $59.1 million, compared to a $40.2 million loss in Q3 2023.

• Core earnings to shareholders for Q3 were $24.1 million, up from $9.7 million in Q3 2023.

• Book value per share ended the quarter at $6.86 USD (CAD 9.26); book value plus net CSM to shareholders per share at $14.99 USD.

• Return on equity (reported) was 25.5% annualized; core ROE was 10.4%.

Outlook and guidance

• Expectation for continued volatility in reported net income due to IFRS 17 accounting, but long-term convergence with core net income.

• Management targets new business CSM between $160 million and $180 million for 2024.

• Medium-term core ROE target is 13%+; core dividend payout ratio target remains 30–40%.

• U.S. business is positioned to exceed $1 billion in new business in 2025, with positive ROE trajectory.

• Q4 production expected to be softer due to recent interest rate movements, but 2025 outlook remains strong.