Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — FY2020 Earnings Presentation
27 slides from Sagicor Financial Co. Ltd. Class A's earnings presentation, 2021
Slide 1: Sagicor Financial Company Ltd. (TSX: SFC) Q4 and Full Year 2020
Sagicor Financial Company Ltd. (TSX: SFC) Q4 and Full Year 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 Q4 2020 3
Slide 4: Sagicor at a glance
Sagicor at a glance ▪ Leading financial services provider in 20 Financial Results (US$ million) 2019 2020 countries primarily in the Caribbean, with a growing presence in the USA Revenue 1,867 1,878 Net income to shareholders 87 (4) ▪ Provides life, health, and P&C insurance, annuities, banking, ass
Slide 5: Sagicor investment highlights (TSX:SFC)
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: Over 180 years of building a regional insurance leader through integration of strategic acquisitions
Over 180 years of building a regional insurance leader through integration of strategic acquisitions Acquisition of RBC Launch of affiliate Jamaica was reinsurance subsidiary completed and operations rebranded as Sagicor Bank Acquisition of Island Life in Jamaica Redomiciliation to and Nationwide In
Slide 7: Diversified business model with a market leading position in the Caribbean and a growing US business
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 ▪ Over 180-year history, 4,500+ employees wit
Slide 8: Sagicor is a leader in digital
Sagicor is a leader in digital 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-face m
Slide 9: Group results and highlights
Business overview Group results and highlights Capital management Outlook Key takeaways Q4 2020 9
Slide 10: Q4 2020 financial highlights
Q4 2020 financial highlights Net income to Net insurance Total revenue shareholders premium revenue $29m $675m $511m +152% Y/Y +43% Y/Y +70% Y/Y Shareholders’ Leverage ratio MCCSR equity $1,110m 22.2% 252% +$60m compared to Q1 improved 0.6 pts Y/Y down 1 pt Y/Y ▪ Q4 2020 was a strong quarter and Sag
Slide 11: Strong Q4
Strong Q4 Total revenue (US$ million) Net income to shareholders (US$ million) +43% 55 36 674 44 472 459 343 402 29 11 (0) (4) Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q4'19 Q2'20 Q3'20 Q4'20 (29) Q1’20 Note: Q4 2019 net income to shareholders affected by approximately $44 million one-time charge related to eq
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 & 4% Individual Life, Investment Health, & Mgmt. Annuity 9% 68% Group Life, Revenue Health, US$1,878m & Annuity (2020) 16% Sagicor Life USA Sagicor Jamaica Sagicor Life Head office, Head office, H
Slide 13: Sagicor Life USA
Sagicor Life USA 36% of 2020 group (100% ownership) revenue Fast-growing provider of individual Q4 2020 Highlights annuities and life insurance with ▪ Revenue of $295 million up 186% Y/Y opportunities to cross-sell ▫ Net premium revenue of $255 million, up 260% Award-winning, simple, easy-to-buy lif
Slide 14: Sagicor Jamaica
Sagicor Jamaica 34% of 2020 group (49% ownership) revenue Q4 2020 Highlights 1 #1 market share in individual and group insurance, and asset management ▪ Revenue of $177 million declined 9% Y/Y ▫ Driven principally by a devaluation of nearly 8% Offers investment management and year over year in the J
Slide 15: Sagicor Life
Sagicor Life 28% of 2020 group (100% ownership) revenue Q4 2020 Highlights Leading market shares in the English- speaking Caribbean ▪ Revenue of $191 million up 18% Y/Y ▪ Trinidad & Tobago ▪ St. Lucia ▪ St. Vincent & the ▫ Net premium revenue of $156 million, increased ▪ Barbados ▪ Anguilla Grenadin
Slide 16: Capital management
Business overview Group results and highlights Capital management Outlook Key takeaways Q4 2020 16
Slide 17: Executing on capital deployment priorities
Executing on capital deployment priorities Funding Dividend to organic investors growth - Supporting growth in Sagicor - US$33 million paid to Life USA, other organic investors in 2020, initiatives representing ~5% dividend yield at current market price M&A opportunities Share and strategic buybacks
Slide 18: Sagicor's credit rating upgraded by S&P to BB+ in Q4 2020
Sagicor’s credit rating upgraded by S&P to BB+ in Q4 2020 Sagicor Upgraded To 'BB+' From 'BB' On Consistently Stronger Capital Adequacy, Outlook Stable “(S&P Global Ratings) We're upgrading Sagicor group (Sagicor) because we think its capitalization will remain strong in the next few years following
Slide 19: Sustained balance sheet growth
Sustained balance sheet growth Shareholders’ equity (US$ million) Financial investments (US$ million) 21% CAGR 13% CAGR 1,154 1,110 6,686 7,239 4,953 5,348 625 601 2017 2018 2019 2020 2017 2018 2019 2020 Total assets (US$ million) Policy liabilities (US$ million) 11% CAGR 11% CAGR 8,729 9,266 4,883
Slide 20: Strong capital position with major deployment potential
Strong capital position with major deployment potential ▪ $1,110 million of shareholders equity, including MCCSR (%) additional equity capital raised in 2019 to be deployed in 2021 and beyond ▪ Robust capitalization with MCCSR of 252% for its insurance entities as at Q4 2020 249% 258% 234% 253% 252%
Slide 21: Share repurchases
Share repurchases Sagicor Financial Company Ltd. ▪ Effective September 2020, Sagicor expanded its share buyback is a publicly traded company on program (Normal Course Issuer Bid) launched in June the Toronto Stock Exchange ▪ Sagicor can now repurchase up to 8,000,000 of its common shares outstanding
Slide 22: Outlook
Business overview Group results and highlights Capital management Outlook Key takeaways Q4 2020 22
Slide 23: Good performance in 2020 in the context of a difficult operating environment
Good performance in 2020 in the context of a difficult operating environment ▪ 2020 started with positive momentum after exceeding targets in 2019 Q1 Q4 was a very solid quarter with strong profitability and sales, and improved asset prices Q2 Q3 saw improvements in sales as pandemic lockdown restri
Slide 24: Significant growth opportunities
Significant growth opportunities Caribbean ▪ Continue growth in Caribbean markets where Sagicor is a leader and population is under-insured and under-pensioned, leveraging our digital initiatives ▪ Expand product base in core markets into banking and wealth management United States ▪ Continue to gro
Slide 25: Key takeaways
Business overview Group results and highlights Capital management Outlook Key takeaways Q4 2020 25
Slide 26: Strong track record and well positioned for future growth
Strong track record and well positioned for future growth ▪1 Proven resilience in the context of a challenging operating environment in 2020 with a strong 180-year track record ▪2 Significant organic and inorganic growth opportunities in core markets ▪3 Well-capitalized with $450 million recent equi
Slide 27: 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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