Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Q2 2024 Earnings Presentation
27 slides from Sagicor Financial Co. Ltd. Class A's earnings presentation, 2024
Slide 1: Sagicor Financial Investor Presentation Q2 2024
Sagicor Financial (TSX:SFC) Investor Presentation Q2 2024
Slide 2: Sagicor at a Glance
Sagicor at a Glance ▪ Sagicor is a leading provider of insurance products and related financial services ▫ Core products and services include life and health insurance, annuities, pension investment and administration, property and casualty insurance, and a suite of ancillary non-insurance financial
Slide 3: Over 180 Years of History
Over 180 Years of History Acquisition of ivari for C$375 million1 Acquisition of RBC Launch of affiliate Jamaica; rebranded reinsurance as Sagicor Bank subsidiary 2023 Redomiciliation Acquisition of U.S. platform to Bermuda (rebranded as Sagicor Life Acquisition of Island Life in Jamaica Insurance C
Slide 4: Investment Highlights
Investment Highlights 4
Slide 5: Sagicor's Investment Highlights
Sagicor’s Investment Highlights Life insurance operator with market leading positions in Canada and 1 the Caribbean and a growing annuities platform in the U.S. 2 Track record of sustainable growth and profitability 3 Attractive valuation with significant future profits on the books Well capitalized
Slide 6: Sagicor Business Overview
1 Sagicor Business Overview ▪ Sagicor’s balance sheet is approximately 75% in Canada and the United States, providing a stable base for participation in those markets ▪ Over 85% of revenues1 primarily comprised of life insurance, health insurance, and annuities sold to individuals and groups ▪ Leadi
Slide 7: Track Record of Sustainable Growth and Profitability
2 Track Record of Sustainable Growth and Profitability In four years since listing on the Toronto Stock Exchange in Q4 2019, this team has: ✓Grown assets by over 150% ✓Grown comparable earnings by over 115%1 ✓Grown deployable capital2 / comparable book value by over 95% ✓Restored investment grade st
Slide 8: Attractive Valuation With Significant Future Profits on the Books
3 Attractive Valuation With Significant Future Profits on the Books Loss Absorbing Capital to Net Risk Adjustment ➢ Provisions on balance Shareholders1 (RA) to sheet and released into US$2.7 billion Shareholders1 income over time (C$26.29 US$0.7 billion per share) (formerly PFADs) (C$6.43 per share)
Slide 9: Well Capitalized with Available Excess Capital and Liquidity
4 Well Capitalized with Available Excess Capital and Liquidity 26.8% Financial leverage ratio1 $175 million Liquidity from revolving credit facility 138% 309% Group-LICAT1 ratio MCCSR1 ratio Strong capital base with significant excess capital Significant capital deployment potential Solid capital po
Slide 10: Sagicor's Growth Strategy
5 Sagicor’s Growth Strategy ▪ Growth through prudent and active management of the operating subsidiaries ▪ Focused on growing high unit-economics businesses and products Multiple Avenues for Growth Continue to organically grow the Synergies through consolidation of U.S. annuities platform Canada and
Slide 11: Strong Track Record of Returning Capital to Shareholders
6 Strong Track Record of Returning Capital to Shareholders $151 million1 $54 million2 Dividends Declared Share Repurchases Since TSX Listing Since TSX Listing Capital Returned (US$ millions) Annual Dividends Declared Annual Share Repurchases 30% to 40% $52.4 Dividend Payout Ratio3 (2024E) $46.3 Base
Slide 12: Experienced Management Team
7 Experienced Management Team ▪ Appointed President and Chief Executive Officer in April 2023 Andre Mousseau President and ▪ Previously held the positions of Group Chief Operating Officer from 2021 to 2023, and Group Chief Financial Officer from 2019 to 2023 Chief Executive Officer ▪ Over 20 years o
Slide 13: Experienced and Aligned Board of Directors
7 Experienced and Aligned Board of Directors Board of Directors Motivated and Engaged Anchor Investors Share count reduced from Chairman Mahmood Khimji 147.8 million at TSX listing JMMB1 President Andre Mousseau & CEO 141.1 million The Most Honourable Issued and Outstanding Dodridge D. Miller Common
Slide 14: Sagicor: An Attractive Investment Opportunity
Sagicor: An Attractive Investment Opportunity Last Twelve Months Performance Canadian Lifecos P/B1 P/E 2024E2 P/E 2025E2 Assets by Geography C$8.00 Share Price Return: +47% (Q2 2024) Great-West Lifeco 1.7x 9.7x 9.3x Total Shareholder Return: +54% iA Financial 1.4x 9.6x 8.7x Other Barbados Canada Man
Slide 15: Business Segment Overviews
Business Segment Overviews 15
Slide 16: Sagicor Canada
Sagicor Canada ▪ Sagicor Canada (ivari) is a leading middle-market life insurance platform founded as Transamerica Life Canada in 1927 ▫ Acquired by Sagicor in 2023 and furthers the company’s strategy of growing in individual life insurance ▪ Primary offering includes universal life and traditional
Slide 17: Sagicor Life USA
Sagicor Life USA ▪ Acquired by Sagicor through two acquisitions in 2005 (American Founders and Laurel Life) ▫ Has since narrowed its focus to grow in the individual fixed annuities market, having doubled the size of its balance sheet in the last five years ▪ Primarily offers fixed annuities ▫ Offere
Slide 18: Sagicor Jamaica
Sagicor Jamaica ▪ Largest publicly traded financial company on the Jamaica Stock Exchange (JSE:SJ) ▫ Leading life insurer and investments platform, commercial bank, and property and casualty insurer in the Jamaican market ▪ Primarily offers life and health insurance and annuities but also includes b
Slide 19: Sagicor Life
Sagicor Life ▪ Sagicor Life was established in 1840 in Barbados as Barbados Mutual Life Assurance Society and has grown in many of its markets across the English-speaking Caribbean1 ▪ Provides life and health insurance, annuities, pension services, and asset management ▪ Strong brand and market shar
Slide 20: Sustained Balance Sheet Growth Driving Strong Profitability
Sustained Balance Sheet Growth Driving Strong Profitability Total Assets Revenues1,2 (US$ billions) (US$ millions) $22.4 $22.0 $3,048 $2,540 $2,534 $2,359 $1,867 $1,878 $10.4 $10.8 $9.3 $1,386 $8.7 $7.3 2018 2019 2020 2021 2022 2023 Q2 2024 2018 2019 2020 2021 2022 2023 LTM Q2 2024 IFRS 4 IFRS 17 IF
Slide 21: Key Messages
Key Messages ➢ Board and management focused on enhancing shareholder value ➢ Significant growth opportunities with focus on expanding ROE1 ➢ Attractive valuation with significant future profits on the books ➢ Track record of value creation and returning capital1 to shareholders 1Represents a non-IFR
Slide 22: Appendix
Appendix 22
Slide 23: Resilient Investment Portfolio Driven by Sound Investment Policies
Resilient Investment Portfolio Driven by Sound Investment Policies ▪ Conservative investment portfolio comprised mostly of corporate and government bonds ▪ Portfolio driven primarily by highly liquid investment grade debt ▪ Limited exposure to real estate, private debt, private equity, and public eq
Slide 24: Footnotes
Footnotes From Slide 3 1Before certain closing adjustments of approximately C$6 million; final purchase price of C$369 million From Slide 6 Sources: Insurance Association of Jamaica, Barbados Financials Services Commission, Financial Services Authority (St. Vincent & the Grenadines), Financial Servi
Slide 25: Caution Regarding Forward-Looking Information and Non-IFRS Measures
Caution Regarding Forward-Looking Information and Non-IFRS and Other Financial Measures This investor presentation for Sagicor Financial Company Ltd. (“Sagicor Financial”, “Sagicor” or the “Company”) should be read in conjunction with the Company’s Management’s Discussion & Analysis (“MD&A”) and the
Slide 26: Disclaimer
Disclaimer By attending the meeting where this presentation is made, by reading the presentation slides or by otherwise receiving the information herein, you will be deemed to have accepted and to have acknowledged the following limitations: The material contained within this is presentation is gene
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