Sagicor Financial Co. Ltd. Class A · TSX:SFC
Sagicor Financial Co. Ltd. Class A — Debt Investor Presentation (September 2024)
29 slides from Sagicor Financial Co. Ltd. Class A's debt investor presentation, September 2024
Slide 1: Sagicor Financial Fixed Income Investor Update September 2024
Sagicor Financial Fixed Income Investor Update September 2024
Slide 2: 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 that follows is a presentation of general bac
Slide 3: Company Overview
Company Overview 3
Slide 4: 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 5: 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 6: Credit Investment Highlights
Credit Investment Highlights 6
Slide 7: Sagicor's Credit Investment Highlights
Sagicor’s Credit Investment Highlights Life insurance operator with market leading positions in Canada and the 1 Caribbean and a growing annuities platform in the U.S. 2 Track record of robust growth and profitability 3 Strong capital base providing stability through economic cycles 4 Conservative l
Slide 8: 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 9: 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 72%1 ✓Grown deployable capital2 / comparable book value by 48% ✓Restored investment grade status T
Slide 10: Strong Capital Base Providing Stability Through Economic Cycles
3 Strong Capital Base Providing Stability Through Economic Cycles ▪ Significant level of loss-absorbing capital in excess ➢ Provisions on balance Loss of best estimate liabilities Absorbing Net Risk sheet and released into Capital1 Adjustment (RA)1 income over time US$0.7 billion ▪ Voluntarily adopt
Slide 11: Conservative Leverage and Prudent Capital Management
4 Conservative Leverage and Prudent Capital Management ▪ Prudent capital management bolstered by additional over $1 billion in net capital raised since 2019 ▫ Target financial leverage of near or below 30% in ordinary course and committed to an investment grade platform ▪ Layers of conservatism and
Slide 12: Resilient Investment Portfolio Driven by Sound Investment Policies
5 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
Slide 13: Experienced Management Team With a Strong Risk Culture
6 Experienced Management Team With a Strong Risk Culture ▪ 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 Executiv
Slide 14: Experienced Board of Directors With a Strong Risk Culture
6 Experienced Board of Directors With a Strong Risk Culture Board of Directors Corporate Governance Overview ▪ In-depth corporate governance policies and procedures aligned with Sagicor’s public listing in Toronto Chairman Mahmood Khimji ▫ Implementation of enhanced financial disclosures at year- an
Slide 15: Business Overview
Business Overview 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 Net Income
Sustained Balance Sheet Growth Driving Strong Net Income Total Assets (US$ billions) Revenues1,2 (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 IFRS
Slide 21: Sagicor's Growth Strategy
Sagicor’s Growth Strategy ▪ Growth through prudent and active management of the operating subsidiaries ▪ Focused on growing high unit-economics businesses and products ▪ Appropriately comprehensive view of returns on a risk-adjusted basis with risk management immersed throughout the business lines M
Slide 22: Appendix
Appendix 22
Slide 23: Management Team and Board With Significant Equity Ownership
Management Team and Board With Significant Equity Ownership Motivated and Engaged Anchor Investors Insiders and anchor investors on board of directors owning over 40%1 JMMB2 Expert finance and risk professionals with a strong and proven track record across 141.1 million large, global, and complex in
Slide 24: Enterprise Risk Management Framework
Enterprise Risk Management Framework Enterprise Risk Management Framework Risk Governance Risk Identification Risk Quantification Risk Decision Making Risk Messaging ▪ Three lines of defense ▪ Standardized risk ▪ Quantification of key ▪ Risk appetite and risk ▪ Various internal risk (“LOD”) taxonomy
Slide 25: Sustainability at Sagicor
Sustainability at Sagicor ▪ Environmental ▫ Maintain support to our local governments, clients, and communities to facilitate our collective transition to a climate resilient economy – 4.0% exposure to energy sector1 ▫ Certain countries or regions where we operate are more susceptible to extreme wea
Slide 26: Simplified Organization Structure
Simplified Organization Structure Unregulated Holding Company Regulated Operating Company Sagicor Financial Issuer Credit Rating Company Ltd. S&P: BBB Stable (Bermuda) (Publicly Traded) DBRS: BBB (low) Stable Fitch: BBB- 100% 100% Sagicor Financial ivari Holdings Inc. (Canada) Corporation Limited (B
Slide 27: Footnotes
Footnotes From Slide 5 1Before certain closing adjustments of approximately C$6 million; final purchase price of C$369 million From Slide 8 Sources: Insurance Association of Jamaica, Barbados Financials Services Commission, Financial Services Authority (St. Vincent & the Grenadines), Financial Servi
Slide 28: Caution Regarding Forward-Looking Information and Non-IFRS and Other Financial Measures
Caution Regarding Forward-Looking Information and Non-IFRS and Other Financial Measures Forward-Looking Information Certain information contained in this presentation may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “expe
Slide 29: Slide 29
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