Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Investor Presentation (June 2020)
19 slides from Sagicor Financial Co. Ltd. Class A's investor presentation, June 2020
Slide 1: Sagicor Financial Company Ltd. June 2020
SAGICOR FINANCIAL COMPANY LTD. June 2020
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: Why invest in Sagicor (TSX:SFC)
Why invest in Sagicor (TSX:SFC) ▪ Solid, market-leading and profitable Caribbean life insurer and financial services provider with three strong operating segments – Sagicor Life Inc., Sagicor Group Jamaica (49% controlling ownership) and Sagicor Life USA ▪ Well-capitalized to execute growth ▪ Compel
Slide 4: Sagicor is a market leader in the Caribbean
Sagicor is a market leader in the Caribbean ▪ Leading indigenous life insurer in English-speaking Caribbean countries ▪ Strong market share across core geographies ▪ 180-year history, >4,500 employees including 1,300 agents in 20 countries LEADING MARKET Hospitality and Other 4% POSITIONING P&C 3% B
Slide 5: Sagicor has 3 main operating segments
Sagicor has 3 main operating segments Sagicor Jamaica (JSE: SJ) Sagicor Life Sagicor Life USA (49% Ownership) (100% Ownership) (100% Ownership) • #1 individual life, group health provider in • Leading market shares throughout • Growing provider of life insurance Jamaica, plus significant investment
Slide 6: Capitalization
Capitalization ▪ $1.1 billion of shareholders equity, including $450 million of additional equity capital raised Shareholders in 2019 to be deployed in 2020 and beyond ▪ Approximately 149.2 million shares Existing JMMB Sagicor outstanding, of which approximately 44% is shareholders 22% held by new a
Slide 7: Overview of invested assets
Overview of invested assets 65% of portfolio is INVESTMENT PORTFOLIO BREAKDOWN (Year end 2019) investment grade Over 70% investment grade pro forma acquisition of Clico / Financial BAT in Trinidad Statement Credit Exposures: Total Lending portfolio is US$7.41 bn Investment recourse and fully-
Slide 8: Growth opportunities
Growth opportunities Continue growth in Caribbean markets where Sagicor is a leader and population is under- insured Expand product base in core markets into banking and wealth management Continue to grow U.S. business in life and annuities Use excess capital for inorganic growth Optimize
Slide 9: FY 2019 highlights
FY 2019 highlights Net income to shareholders from continuing operations of $87 million (versus target of $77 million) Total revenues of $1.9 billion, up 35% Completed transaction with Alignvest Acquisition II Corp Added new anchor shareholders Secured $450 million of new equity Transiti
Slide 10: Review of Q1 2020 key highlights
Review of Q1 2020 key highlights ▪ COVID-19 brought significant disruption to the markets ▪ All segments were impacted to varying degrees by market reaction to COVID-19 ▪ Reported net income to shareholders from continuing operations was a loss $29 million, impacted by lower asset valuations ▪ Under
Slide 11: Sagicor Life – Q1 2020
Sagicor Life – Q1 2020 Sagicor Life (100% Ownership) Q1 2020 Highlights ▪ Leading market shares throughout Revenues of $153 million declined 16% Q/Q English-speaking Caribbean Impacted by mark-to-market losses on its financial investments ▪ Revenue growth opportunity in a region Prior year pre
Slide 12: Sagicor Jamaica – Q1 2020
Sagicor Jamaica – Q1 2020 Sagicor Jamaica (JSE: SJ) Q1 2020 Highlights (49% Ownership) Revenues of $132 million declined 19% Q/Q #1 individual life, group health provider in Primarily driven by broad market decline in Jamaica, plus significant investment the bond and equity markets and signifi
Slide 13: Sagicor Life USA – Q1 2020
Sagicor Life USA – Q1 2020 Sagicor Life USA (100% Ownership) Q1 2020 Highlights Growing provider of life insurance and Revenues of $91 million declined 56% Q/Q fixed annuities Premiums impacted by continued low interest rates on annuity products Significant realized and unrealized investment
Slide 14: COVID-19 response
COVID-19 response We are focused on employees, customers and community Employees Customers Community Sagicor Group donated Early pension payments Immediate travel restrictions US$1 million to assist in case of need Caribbean regions Sagicor donates 20,000 N 95 Varying levels of “Working from Mortgag
Slide 15: Estimated financial impact from COVID-19
Estimated financial impact from COVID-19 Underlying net income Estimated reconciliation Non-IFRS measure to help better Net income (loss) attributed to shareholders ($29.3 million) Increase in expected credit losses due $12.9 million understand normalized earnings capacity COVID-19 (1) and valuati
Slide 16: Net income to shareholders
Net income to shareholders 100 90 80 70 $ USD millions 60 50 40 30 20 10 0 2014 2015 2016 2017 2018 2019 Q1 2020 Represents net income to shareholders from continuing operations. • 2018 affected by Barbados debt restructuring. Management estimates net income to shareholders in 2018 would have been a
Slide 17: 2020 Outlook
2020 Outlook ▪ 2020 started with positive momentum after exceeding targets in 2019 ▪ Starting in March 2020, COVID-19 pandemic has affected all of the markets in which we operate ▫ Concentrating on adjusting operations, continuing to support our policyholders, customers and local economies ▫ Phased
Slide 18: Key takeaways
Key takeaways Established 180 year old market-leading Caribbean life insurer with opportunities for growth in core markets Strong brand and customer loyalty Well-capitalized with $450 million new equity raise Compelling entry point with new listing on TSX 18
Slide 19: For further information
For further information Samantha Cheung, EVP Investor Relations Samantha_Cheung@Sagicor.com 416-898-4324 or 800-342-0719 Andre Mousseau, Group CFO Andre_Mousseau@Sagicor.com Please visit www.sagicor.com
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