Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Sagicor Group Jamaica — Shareholder Meeting (May 2024)
39 slides from Sagicor Financial Co. Ltd. Class A's shareholder meeting presentation, May 22, 2024
Slide 1: 2023 President & CEO's Report
2023 President & CEO’s Report Presentation at the SGJ Annual General Meeting Chris Zacca May 2 2, 202 4
Slide 2: Presentation Summary
Presentation Summary ► Financial Review 2023 ► Business Unit Performance 2023 ► Other Key Updates ► Our Corporate Social Responsibility ► Outlook
Slide 3: Our Strategy
Our Strategy Our corporate strategy informs the development of key initiatives, which are implemented in an agile way to guide us towards accomplishing our strategic objectives.
Slide 4: Organisation Structure
Sagicor Group Jamaica Limited Organisation Structure AS AT DECEMBER 31, 2023
Slide 5: We continue to grow – Welcoming Sagicor Panama to the Family
We continue to grow – Welcoming Sagicor Panama to the Family Alignment and Growth Market Expansion • In December 2023, we acquired Sagicor • This is a major milestone as we seek to Panama, furthering our expansion into Latin replicate the success of our Costa Rican America through the joint venture
Slide 6: Our Digital Journey
Our Digital Journey • Five-year plan focused on all lines of business • Utilizing an agile approach to create a future-ready, fully-integrated digital ecosystem PRODUCTS • Offer a unified experience for all stakeholders using existing and emerging technology AGILE PROCESSES INFRASTRUCTURE • Implemen
Slide 7: 2023 Financial Review
2023 Financial Review S Sagicor Group Jamaica
Slide 8: Net Profit to Stockholders
Net Profit to Stockholders In 2023, we achieved net profit attributable to stockholders of $14.4 billion, a 50% increase over the prior year when restated under the IFRS 17 standard. (J$ billions) 20.0 15.0 10.0 17.4 15.7 13.8 14.4 5.0 9.6 0.0 2019 2020 2021 2022 2023 (Restated) FUTURE READY [NOW]
Slide 9: Revenue
Revenue We generated $90.9 billion in revenue. This 46% improvement over prior year was due to policy retention, growth in the commercial bank and increased Net Investment Income. (J$ billions) 90.0 60.0 102.6 92.6 90.9 84.6 30.0 62.2 0.0 2019 2020 2021 2022 2023 (Restated) FUTURE READY [NOW]
Slide 10: Adjusted Stockholders' Equity
Adjusted Stockholders' Equity • Stockholders’ equity grew to $99.8 billion, a 19% increase over the restated prior year. • Stockholders’ equity plus CSM grew to $144.0 billion, a 21% increase year-over-year. (J$ billions) Stockholders' Equity Contractual Service Margin 150.0 44.2 100.0 35.8 50.0 106
Slide 11: Total Assets
Total Assets Total assets as at December 2023 were $560.6 billion, a 9% increase over the prior year. (J$ billions) 600.0 400.0 535.3 560.6 515.8 460.0 200.0 409.7 0.0 2019 2020 2021 2022 2023 (Restated) (Restated) FUTURE READY [NOW]
Slide 12: Overview of Year-over-Year Metrics
Overview of Year-over-Year Metrics 2022 2023 (Restated) Net Profit $14.37B $9.59B Insurance Service Results $8.07B $7.14B Contractual Service Margin $5.43B $4.26B Group Total Assets $560.65B $515.78B Return on Equity 16% 11% Stockholders’ Equity $99.78B $83.61B Adjusted Stockholders’ Equity (+CSM) $
Slide 13: Industry Ratings
Industry Ratings Sagicor Group Jamaica CariA Stable CariCRIS (Stable) OUTLOOK Credit Rating FOREIGN Retained Highest Credit CURRENCY Worthiness Rating For a Jamaican Company Sagicor Group Jamaica CariA+ jmAAA jmAA+ • Leading Market Positions (Stable) (Stable) (Stable) • Strong Brand Equity LOCAL NAT
Slide 14: Largest Financial Conglomerate on the Jamaica Stock Exchange
SGJ maintained its position as THE LARGEST FINANCIAL CONGLOMERATE ON THE JAMAICA STOCK EXCHANGE IN 2023 (measured in terms of market capitalisation) $189.3 $168.4 $119.3 SAGICOR NCBFG $78.4 $50.7 SCOTIA PAN JAMAICA J$ billions GROUP *As at Dec. 2023 JMMBGL
Slide 15: 2023 Business Segment Performance
2023 Business Segment Performance
Slide 16: SGJ Net Profit Contribution by Business Segment
SGJ Net Profit Contribution Sagicor Group Jamaica is a diversified Financial Services company. Our core by Business Segment business remains strong, and t he Group’s profits are primarily generated from four segments. 71% 25% Long Term Insurance Sagicor Bank Other Segment represents -12% of the over
Slide 17: Net Profit by Business Segment
Net Profit by Business Segment Our business segments contribute to our overall Group Profit, highlighting the stability and resilience provided by our diversified portfolio. Other includes Money Services, Microfinancing, Property Management, Insurance Brokerage, Bailey Williams, Captive Mgmt. (SIM)
Slide 18: Revenue by Business Segment
Revenue by Business Segment In 2023, insurance and commercial banking drove most of our revenue, delivering 65% and 22%, respectively. FUTURE READY [NOW]
Slide 19: Long Term Insurance
Long Term Insurance • Includes products with contracts exceeding one year in Net Profit (J$ Billions) duration (e.g., Individual Life insurance) 11 10.23 9.85 • In 2023, achieved $10.23 billion in net profit, a 4% increase over 2022. 9 • Results were driven by strong new business sales and improved
Slide 20: Short Term Insurance
Short Term Insurance • Includes products with contracts less than one year Net Profit (J$ Millions) (e.g., Group Health and Life insurance). 1600 1,554 • In 2023, achieved $1.55 billion in net profit, a 1095% improvement over prior year. 1200 • Strategies were implemented to improve loss ratios with
Slide 21: Commercial Banking
Commercial Banking • Achieved $3.58 billion in net profit in 2023, a 9% Net Profit (J$ Billions) 4.0 increase over prior year amidst local regulatory 3.58 changes. 3.29 • Loan portfolio grew by 10%, which contributed to 3.0 provisions for expected credit losses increasing by $122 million year over y
Slide 22: Investment Banking
Investment Banking • Includes Sagicor Investments Jamaica and Sagicor Net Profit (J$ Billions) Investments Cayman. 1.12 • Achieved $763 million in net profit in 2023. 1.0 • Performance was impacted by unfavorable capital 0.76 market conditions and narrowed interest margins. • Sagicor Investments Cay
Slide 23: Money Services
Money Services • Includes Alliance Financial Services, which was acquired on March 1, 2022, and restarted its operations in April of the same year. • Its primary revenue sources are fee-based income from remittance transactions, which are processed on behalf of MoneyGram International, and trading g
Slide 24: Other Interests
Other Interests SGJ owns 60% stake in Advantage SGJ owns 50% stake in Sagicor Costa General Insurance Company through Rica its subsidiary SIJL • Contributed J$249.2 million in net profit in • Contributed J$241.7 million in net profit in 2023 2023 • Total revenue of J$8.29 billion, which is a • Celeb
Slide 25: Other Key Updates
Other Key Updates S Sagicor Group Jamaica
Slide 26: Total Assets Under Management
Total Assets Under Management In 2023, for the first time we managed more than $1.0 trillion of assets both on and off balance sheet. (J$ billions) On Balance Sheet Off Balance Sheet Total AUM 1,000.0 750.0 1,030.7 972.7 500.0 963.6 250.0 535.3 515.8 560.6 428.3 456.9 470.1 0.0 2021 2022 2023 FUTURE
Slide 27: Other Key Indicators
Other Key Indicators • SLJ’s capital ratio, now calculated using Life Insurance Capital Adequacy Test (LICAT), was 155.2% in 2023 (above regulated minimum). • The 2023 Capital Adequacy Ratio was 16.5% for SIJ and 13.4% for SBJ (both exceeding the 10% minimum) FUTURE READY [NOW]
Slide 28: Our People … Our Future
Our People ... Our Future S Sagicor Group Jamaica
Slide 29: Our Team: A Critical Pillar for Success
Our Team: A Critical Pillar for Success In response to the changes in the world of work and in alignment with our digital transformation strategy, our 2023 people priorities included: • Flexible work arrangements • Recruitment and talent retention • Team member well-being • Team member engagement an
Slide 30: Team engagement and wellness remained a top priority
Team engagement and wellness in support of high performance remained a 2023 top priority and is a key Team Member of the Year Nominees part of our DNA
Slide 31: Learning & Development as well as Talent Management
Learning & Development as well as Talent Management continue to be strong areas of focus. 2023 Manager of the Year Nominees
Slide 32: Our Corporate Social Responsibility
Our Corporate Social Responsibility
Slide 33: SIGMA Run 2023
Our CSR initiatives continue to be geared towards improving the lives of Jamaicans by caring, inspiring and serving. SIGMA RUN 2023 RAISE $91,852,500 NUMBER OF PARTICIPANTS 20,000
Slide 34: Investment in Health
Investment in Health We committed $75 million to the University Hospital of the West Indies BREAST CANCER AWARENESS For Breast Cancer Awareness Month, we did a road tour to provide free mammograms and deliver self-examination lessons in Kingston, Ocho Rios, Mandeville and Montego Bay. The Sagicor Fo
Slide 35: Investment in Education
Investment in Education SCHOLARSHIP PROGRAMME The 2023 Sagicor Foundation Scholarship Programme saw 35 students being awarded with scholarships – 15 at the tertiary level and 20 secondary scholars. Scholarships were also awarded to the three champion girls and three champion boys of the Sagicor/JTA
Slide 36: Investment in Sports
Investment in Sports SAGICOR/JTA NATIONAL ATHLETIC CHAMPIONSHIPS The Sagicor Foundation continued its partnership with the JTA for the Championships with sponsorship of $8 million as well as volunteer support. The event is considered the birthplace of talent for several of the nation’s brightest int
Slide 37: Supporting Environmental Sustainability
Supporting Environmental Sustainability • In line with our ESG framework, SGJ embraces environmentally sustainable business practices. • Key initiatives undertaken in 2023 include: • Facilitating a hybrid work environment • Implementing digital solutions • Driving data privacy and governance • Dispo
Slide 38: Our Outlook
Our Outlook Sagicor Group Jamaica maintains an optimistic outlook as we navigate the ever-changing landscape with resilience and adaptability. Consistent performance and innovation are at the core of our operations. We continuously seek new opportunities, embrace emerging technologies, and explore u
Slide 39: Thank You
S Sagicor Group Jamaica THANK YOU
Sagicor Group Jamaica — Shareholder Meeting (May 2024) on 6ix