Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Q1 2021 Earnings Presentation
27 slides from Sagicor Financial Co. Ltd. Class A's earnings presentation, 2021
Slide 1: Sagicor Financial Company Ltd. (TSX: SFC) Q1 2021 Investor Presentation
Sagicor Financial Company Ltd. (TSX: SFC) Q1 2021 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 Q1 2021 3
Slide 4: Sagicor at a glance
Sagicor at a glance ▪ Leading financial services provider in 20 Financial Results (US$ million) countries primarily in the Caribbean, with a 2019 2020 Q1 2021 growing presence in the USA Revenue 1,867 1,878 431 ▪ Provides life, health, and P&C insurance, Net income to shareholders 87 (4) 31 annuitie
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 Q1 2021 9
Slide 10: Q1 2021 financial highlights
Q1 2021 financial highlights Net income to Net insurance Total revenue shareholders premium revenue $31m $431m $276m +208% Y/Y +26% Y/Y -13% Y/Y Shareholders’ Leverage ratio MCCSR equity $1,101m 22.0% 246% +5% Y/Y improved 2 pts Y/Y Improved 19 pts Y/Y ▪ Q1 2020 was a strong quarter and Sagicor aims
Slide 11: Strong Q1
Strong Q1 Total revenue (US$ million) Net income to shareholders (US$ million) +26% 36 674 44 29 31 459 402 431 343 (0) (3) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'20 Q4'20 Q1'21 Q3’20 (29) Q1’20 Q1 2021 11
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 7% Banking & 4% Individual Life, Investment Health, & Mgmt. Annuity 10% 62% Group Life, Revenue Health, US$431m & Annuity (Q1 2021) 17% Sagicor Life Sagicor Jamaica Sagicor Life USA Head office, Head office,
Slide 13: Sagicor Life
Sagicor Life 30% of Q1 2021 (100% ownership) group revenue Q1 2021 Highlights Leading market shares in the English- speaking Caribbean ▪ Revenue of $130 million up 15% Y/Y ▪ Trinidad & Tobago ▪ St. Lucia ▪ St. Vincent & the ▫ Net premium revenue of $95 million, increased ▪ Barbados ▪ Anguilla Grenad
Slide 14: Sagicor Jamaica
Sagicor Jamaica 38% of Q1 2021 (49% ownership) group revenue Q1 2021 Highlights 1 #1 market share in individual and group insurance, and asset management ▪ Revenue of $166 million increased 25% Y/Y ▫ Investment gains totaled $3 million and were Offers investment management and higher than the mark-t
Slide 15: Sagicor Life USA
Sagicor Life USA 26% of Q1 2021 (100% ownership) group revenue Q1 2021 Highlights Fast-growing provider of individual fixed annuities and life insurance ▪ Revenue of $111 million up 22% Y/Y ▫ Net premium revenue closed the period at $87 Award-winning, simple, easy-to-buy life million, down 28% Y/Y,
Slide 16: Capital management
Business overview Group results and highlights Capital management Outlook Key takeaways Q1 2021 16
Slide 17: Executing on capital deployment priorities
Executing on capital deployment priorities Funding Dividend to organic investors growth - Supporting growth in Sagicor Life - US$8 million in dividends declared to investors USA, other organic initiatives in Q1 2021, representing ~4% annualized dividend yield at current share price - US$33 million p
Slide 18: Executing on capital optimization strategy
Executing on capital optimization strategy ▪ Subsequent to Q1, Sagicor refinanced and upsized its top company bond ▪ Strong execution and support from global bond investors ▪ Material decrease in the company’s debt cost of capital as the new $400 million bond was issued with an interest rate reducti
Slide 19: Sagicor's credit rating upgraded by S&P to BB+ in Q4 2020
Sagicor’s credit rating upgraded by S&P to BB+ in Q4 2020 Sagicor Upgraded To 'BB+' From 'BB' On Consistently Stronger Capital Adequacy, Outlook Stable “(S&P Global Ratings) We're upgrading Sagicor group (Sagicor) because we think its capitalization will remain strong in the next few years following
Slide 20: Sustained balance sheet growth
Sustained balance sheet growth Shareholders’ equity (US$ million) Financial investments (US$ million) 31% CAGR 16% CAGR 1,154 1,110 1,101 6,686 7,239 7,429 5,348 601 2018 2019 2020 Q1'21 2018 2019 2020 Q1'21 Total assets (US$ million) Policy liabilities (US$ million) 11% CAGR 14% CAGR 8,729 9,266 9,
Slide 21: Strong capital position with major deployment potential
Strong capital position with major deployment potential ▪ $1,101 million of shareholders equity, including MCCSR (%) additional equity capital raised in 2019 to be deployed in 2021 and beyond ▪ Robust capitalization with MCCSR of 246% for its insurance entities as at Q1 2021 234% 253% 252% 246% ▪ Co
Slide 22: 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 23: Outlook
Business overview Group results and highlights Capital management Outlook Key takeaways Q1 2021 23
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 Q1 2021 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 due to the global pandemic, with a strong 180-year track record ▪2 Significant organic and inorganic growth opportunities in core markets ▪3 Well-capitalized with $450
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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