Sagicor Financial Company (SFC) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 and full year 2024 results, with core earnings and net income to shareholders exceeding guidance and demonstrating growth potential for 2025 and beyond.

• Sagicor is a leading insurance and financial services provider in 19 countries, with a balance sheet 75% weighted to Canada and the US, and 85% of revenues from life, health, and annuities.

• Core earnings to shareholders rose 84% year-over-year to $90.9M in 2024, and core basic EPS increased 87% to 64.9¢, driven by Sagicor Canada.

• Strategic initiatives advanced, including technology refresh, segment collaboration, and improved capital access, aimed at cost reduction and ROE expansion.

• Recent acquisition of ivari (Canada) and focus on US annuities platform drive future growth.

Financial highlights

• Q4 core earnings to shareholders rose 28% year-over-year to $28M; net income to shareholders was $52M.

• Full year 2024 net income to shareholders reached $236M (IFRS 17); core earnings to shareholders were $91M, surpassing revised guidance.

• Revenues for 2024 were $3.1B, up from $2.5B in 2023 and $1.386B in 2018.

• New business CSM for 2024 was $166.3M, up 27% year-over-year and within guidance.

• Book value per share at year-end was $7.08 (CAD 10.19); shares trade at a 29% discount to book value.

Outlook and guidance

• 2025 core basic EPS expected between $0.74 and $0.80 per share, translating to $100–$108M in core earnings, representing 14–23% per-share growth.

• New business CSM guidance for 2025 is $180M–$200M; 2026 and beyond target 10%+ core earnings growth.

• Medium-term core ROE target set at 13%+; core dividend payout ratio targeted at 30–40%.

• Focus on organic US annuities growth, integration synergies, and ROE expansion in legacy Caribbean businesses.