Sagicor Financial Company (SFC) Q4 2025 earnings summary

Executive summary

• Delivered record full-year core earnings to shareholders of $142.3 million, up 57% year-over-year and above guidance.

• Achieved a core return on shareholders' equity (ROE) of 14.2%, reaching the medium-term target a year ahead of schedule.

• Core basic EPS for 2025 was 104.9¢, a 62% increase year-over-year.

• Announced a merger of Caribbean subsidiaries to form a single publicly listed entity, enabling a full-scale AI-driven digital transformation.

• Quarterly dividend increased by 11% to US 7.5¢ per share, marking the third consecutive Q4 dividend increase.

Financial highlights

• Q4 core earnings to shareholders rose 13% year-over-year to $32 million.

• Full-year net income to shareholders was $66.9 million, down 31% year-over-year due to market-related impacts.

• Revenues for the year were $3,005.4 million, down from $3.1 billion in the prior year.

• New business CSM reached $167.2 million, within revised guidance.

• Shareholders' equity at year-end was $1.04 billion, up 8% year-over-year.

Outlook and guidance

• No specific core earnings or ROE target for 2026 due to investment year and pending Caribbean merger.

• Guidance for core ROE is 14% in 2027 and 15% in 2028, with upside potential.

• Three growth drivers identified: U.S. annuities expansion, Canadian margin growth, and Caribbean digital transformation.

• Targeted core dividend payout ratio set at 30% to 40%.