Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Q3 2020 Earnings Presentation
26 slides from Sagicor Financial Co. Ltd. Class A's earnings presentation, November 2020
Slide 1: Sagicor Financial Company Ltd. Q3 2020 Investor Presentation
Sagicor Financial Company Ltd. (TSX: SFC) Q3 2020 Investor Presentation
Slide 2: Forward-looking information and non IFRS
Forward-looking information and non IFRS Certain information contained in this presentation may be forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as “expect”, “anticipate”, “believe”
Slide 3: Business overview
Business overview Group results and highlights Capital management Outlook Key takeaways Q3 2020 3
Slide 4: Sagicor at a glance
Sagicor at a glance ▪ Sagicor Financial Company Ltd. is a leading Financial Results (US$ million) 2019 YTD Q3 2020 financial services provider in 20 countries primarily in the Caribbean, with a growing Revenue 1,867 1,204 presence in the USA Net income to shareholders 87 (33) ▪ Sagicor offers life,
Slide 5: Sagicor investment highlights
Sagicor investment highlights (TSX:SFC) Diversified operations with solid market-leading positions in the Caribbean and a fast-growing US business Significant growth opportunities both organic and inorganic Established track record of robust growth driving consistent profitability Well capitalized t
Slide 6: 180 years of building a regional insurance leader
180 years of building a regional insurance leader through integration of strategic acquisitions Inaugural transaction with captive International International reinsurance bond issuance bond issuance subsidiary US$150mm US$150mm Acquisition of 23% interest in Redomiciliation to Life of Barbados Estab
Slide 7: Diversified business model with a market leading position
Diversified business model with a market leading position in the Caribbean and a growing US business ▪ Leading indigenous life insurer in English-speaking Caribbean countries ▪ Strong market share across core geographies and an emerging leader in the USA ▪ 180-year history, 4,000+ employees with 1,2
Slide 8: Sagicor is a leader in technology
Sagicor is a leader in technology State of the art direct to consumer platform Automated underwriting A smarter way to buy life insurance Sagicor recognized as one of the industry leaders in automated underwriting ✓ Instant (within seconds) underwriting decision ✓ Eliminates the need for face-to-fac
Slide 9: Group results and highlights
Business overview Group results and highlights Capital management Outlook Key takeaways Q3 2020 9
Slide 10: Q3 2020 financial highlights
Q3 2020 financial highlights Net insurance Shareholders’ Total revenue premium revenue equity $402m $265m $1,062m resilient Y/Y +1% Y/Y +$450m from equity raise Book value MCCSR Leverage ratio per share 250% 22.6% US$7.24 improved 16 pts since 2018 improved 0.2 pts since 2019 ~C$9.65 ▪ COVID-19 cont
Slide 11: Solid revenue in line with prior year
Solid revenue in line with prior year; and good earnings in the context of a difficult operating environment Total revenue (US$ million) Net income (US$ million) Resilient Y/Y 87 73 43 36 468 472 459 412 402 343 56 60 62 37 44 YTD Q3 2020 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 2015 2016 2017 2018 2019
Slide 12: Diversified business model driven by the strength of three core segments
Diversified business model driven by the strength of three core segments P&C Other Insurance 3% Banking & 5% Individual Life, Health, Investment & Annuity Mgmt. 63% 10% Group Life, Health, Revenue & Annuity US$1,204m 19% (YTD Q3 2020) Sagicor Jamaica Sagicor Life USA Sagicor Life Head office, Head o
Slide 13: Sagicor Jamaica
Sagicor Jamaica 38% of Q3 YTD 2020 (49% ownership) group revenue Q3 2020 Highlights 1 #1 market share in individual and group insurance, and asset management ▪ Revenue of $156 million declined 20% Y/Y ▫ Decline in US$ affected by declining J$/US$ Offers investment management and exchange rate commer
Slide 14: Sagicor Life USA
Sagicor Life USA 32% of Q3 YTD 2020 (100% ownership) group revenue Fast-growing provider of individual Q3 2020 Highlights annuities and life insurance with ▪ Revenue of $113 million up 31% Y/Y opportunities to cross-sell ▫ Net premium revenue of $85 million, up 31% Y/Y Award-winning, simple, easy-to
Slide 15: Sagicor Life
Sagicor Life 28% of Q3 YTD 2020 (100% ownership) group revenue Q3 2020 Highlights Leading market shares in the English- speaking Caribbean ▪ Revenue of $122 million declined 2% Y/Y ▪ Trinidad & Tobago ▪ St. Lucia ▪ St. Vincent & the demonstrating stability against a backdrop of a ▪ Barbados ▪ Anguil
Slide 16: Capital management
Business overview Group results and highlights Capital management Outlook Key takeaways Q3 2020 16
Slide 17: Sagicor's credit rating upgraded by S&P to BB+
Sagicor’s credit rating upgraded by S&P to BB+ (Nov. 2020) Sagicor Upgraded To 'BB+' From 'BB' On Consistently Stronger Capital Adequacy, Outlook Stable “(S&P Global Ratings) We're upgrading Sagicor group (Sagicor) because we think its capitalization will remain strong in the next few years followin
Slide 18: Sustained balance sheet growth
Sustained balance sheet growth Shareholders’ equity (US$ million) Financial investments (US$ million) 21% CAGR 12% CAGR 1,154 1,062 6,686 6,808 4,953 5,348 625 601 2017 2018 2019 Q3 2020 2017 2018 2019 Q3 2020 Total assets (US$ million) Policy liabilities (US$ million) 10% CAGR 9% CAGR 8,729 8,894 4
Slide 19: Strong capital position with significant deployment potential
Strong capital position with significant deployment potential ▪ $1.1 billion of shareholders equity, including MCCSR (%) $450 million of additional equity capital raised in 2019 to be deployed in 2020 and beyond ▪ Robust capitalization with MCCSR of 250% 249% 258% 234% 253% 250% for its insurance en
Slide 20: Share repurchases
Share repurchases Sagicor Financial Company Ltd. ▪ During the quarter Sagicor expanded its share buyback program is a publicly traded company on (Normal Course Issuer Bid) launched in June the Toronto Stock Exchange ▪ Sagicor can now repurchase up to 8.0 million of its common shares outstanding Mark
Slide 21: Outlook
Business overview Group results and highlights Capital management Outlook Key takeaways Q3 2020 21
Slide 22: Solid outlook for 2020 in context of difficult operating environment
Solid outlook for 2020 in context of difficult operating environment ▪ 2020 started with positive momentum after exceeding targets in 2019 ▪ Q1 Q1 Q1 results were primarily affected by asset price movements ▪ Q2 Q2 Q2 showed asset price improvements but slower sales due to the pandemic ▪ Q3 Q3 Q3 sa
Slide 23: Significant growth opportunities
Significant growth opportunities ▪ Continue growth in Caribbean markets where Sagicor is a leader and population is under- insured and under-pensioned ▪ Expand product base in core markets into banking and wealth management ▪ Continue to grow U.S. business in life and annuities ▪ Use excess capital
Slide 24: Key takeaways
Business overview Group results and highlights Capital management Outlook Key takeaways Q3 2020 24
Slide 25: Key takeaways
Key takeaways ▪1 Proven resilience in the context of a challenging operating environment ▪2 Established 180-year-old market-leading Caribbean life insurer with significant organic and inorganic growth opportunities in core markets ▪3 Strong brand and customer loyalty ▪4 Well-capitalized with $450 mi
Slide 26: Investor Inquiries
Investor Inquiries Samantha Cheung EVP Investor Relations Samantha_Cheung@Sagicor.com 1-416-898-4324 or 800-342-0719 Andre Mousseau Group Chief Financial Officer Andre_Mousseau@Sagicor.com Please visit Sagicor.com
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