Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Q2 2020 Earnings Presentation
16 slides from Sagicor Financial Co. Ltd. Class A's earnings presentation, 2020
Slide 1: Sagicor Financial Company Ltd. Q2 2020 Review of Performance
Sagicor Financial Company Ltd. Q2 2020 Review of Performance
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 profitable Caribbean life insurer and financial services provider with three strong operating segments: ▪ Sagicor Life Inc. ▪ Sagicor Group Jamaica ▪ Sagicor Life USA ▪ Well-capitalized to execute growth ▪ Compelling valuation with US$7.21 book
Slide 4: Review of Q2 2020 key highlights
Review of Q2 2020 key highlights ▪ COVID-19 brought significant disruption to the economy and financial markets, and affected all segments ▪ Q2 was a solid quarter in the context of a difficult operating environment ▪ Total comprehensive income to shareholders of $37.1 million as asset prices recove
Slide 5: Recall FY 2019 highlights
Recall 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 ▪ T
Slide 6: Capitalization
Capitalization ▪ $1.1 billion of shareholders equity, including $450 million of additional equity capital raised in 2019 to be deployed in 2020 and beyond ▪ Approximately 149 million shares outstanding, of which approximately 44% is held by new anchor shareholders with strong board representation ▪
Slide 7: 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, 4,000+ employees with 1,200+ advisors in 20 countries Leading Market Position Breakdown by Geography Breakdown by Pr
Slide 8: Sagicor Life
Sagicor Life Sagicor Life Q2 2020 Highlights (100% Ownership) ▪ Revenues of $97 million declined 13% Y/Y ▪ Leading market shares throughout ▪ Primarily impacted by lower new business English-speaking Caribbean sales due to economic uncertainty from the pandemic and an increase in expected ▪ Revenue
Slide 9: Sagicor Jamaica
Sagicor Jamaica Sagicor Jamaica (JSE:SJ) Q2 2020 Highlights (49% Ownership) ▪ Revenues of $167 million declined 8% Y/Y ▪ #1 individual life, group health provider in ▪ Decline in US$ driven by declining J$/USD Jamaica, plus significant investment exchange rate management and commercial bank ▪ Net pr
Slide 10: Sagicor Life USA
Sagicor Life USA Sagicor Life USA Q2 2020 Highlights (100% Ownership) ▪ Revenues of $180 million up 10% Y/Y ▪ Growing provider of life insurance and ▪ Impacted by the reversal of some of the fixed annuities unrealized mark-to-market losses in Q1 ▪ Benefits and expenses increased 18% Y/Y ▪ Primarily
Slide 11: Business performance
Business performance Total Revenue ($ million) Net Income ($ million) 87 76 516 468 472 459 412 60 62 343 56 44 37 H1 2020 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 2015 2016 2017 2018 2019 -30 Represents net income attributed to shareholders from continuing operations. • 2018 net income affected by Barba
Slide 12: 2020 outlook
2020 outlook ▪ 2020 started with positive momentum after exceeding targets in 2019 ▪ Q1 results were primarily affected by asset price movements ▪ Q2 showed asset price improvements but slower sales due to the pandemic ▪ Guidance for financial targets are on hold given the length and severity of the
Slide 13: 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 14: Share repurchases
Share repurchases Sagicor is listed on the ▪ During the quarter Sagicor authorized a share Toronto Stock Exchange buyback program (Normal Course Issuer Bid) in Canada TSX: SFC ▪ Sagicor can repurchase up to 3 million of its common shares outstanding Market Cap C$951 million ▪ Sagicor purchased 963,0
Slide 15: 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 (ticker: SFC) 15
Slide 16: 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
Sagicor Financial Company — Q2 2020 Earnings Presentation on 6ix