Sagicor Financial Co. Ltd. Class A · TSX:SFC

Sagicor Financial Co. Ltd. Class A — Sagicor Group Jamaica — Shareholder Meeting (May 2023)

45 slides from Sagicor Financial Co. Ltd. Class A's shareholder meeting presentation, May 26, 2023

  1. Slide 1: President & CEO's Report

    President & CEO’s Report Presentation at the SGJ Annual General Meeting Chris Zacca May 26, 2023

  2. Slide 2: Presentation Summary

    Presentation Summary ► Financial Review: Full Year 2022 ► Business Unit Performance 2022 ► Stock Market Performance ► Our Corporate Social Responsibility ► Outlook

  3. Slide 3: Impact, Innovation, Transformation

    IMPACT INNOVATION TRANSFORMATION S Sagicor Group Jamaica

  4. Slide 4: A Growing Family – Welcoming Alliance Financial Services

    A Growing Family – Welcoming Alliance Financial Services Alignment and Growth Market Expansion • In April 2022, Sagicor Group Jamaica (SGJ) acquired • AFSL has achieved a few milestones post- 100% of outstanding shares of Alliance Financial acquisition - including almost 50% agent Services Limited (

  5. Slide 5: Organization Structure

    Sagicor Group Jamaica Limited Organization Structure AS AT DECEMBER 31, 2022

  6. Slide 6: Financial Review: Full Year 2022 – $16.38 billion Net Profit

    $16.38 billion SGJ Net Profit Attributable to Shareholders Financial Review: Full Year 2022

  7. Slide 7: SGJ Net Profit 2018-2022

    SGJ achieved net profit attributable to stockholders of $16.38 billion, a 6% reduction over the prior year but a creditable performance in a challenging year characterized by volatility in local and international financial markets. SGJ Net Profit – 2018-2022 20. 15. J$ billions 10. J$ billions 17.4

  8. Slide 8: SGJ Revenue 2018-2022

    SGJ Revenue - 2018-2022 (J$ Billions) 120. 90. J$ Billions 60. 102.6 92.7 97.1 84.6 70.7 30. 0. 2018 2019 2020 2021 2022 IMPACT | INNOVATION | TRANSFORMATION

  9. Slide 9: SGJ Revenue by Business Segment

    SGJ Revenue by Business Segment IMPACT | INNOVATION | TRANSFORMATION

  10. Slide 10: SGJ Net Stockholders' Equity 2018-2022

    SGJ Net Stockholders’ Equity – 2018-2022 150. 120. 90. J$ billions J$ billions 60. 114.8 113.9 106.2 91.3 74.3 30. 0. 2018 2019 2020 2021 2022 IMPACT | INNOVATION | TRANSFORMATION

  11. Slide 11: SGJ Group Efficiency Ratio

    SGJ Group Efficiency Ratio (%) 35 34 33 % percentage 32 % percentage 34 31 32 32 30 31 31 29 2018 2019 2020 2021 2022 IMPACT | INNOVATION | TRANSFORMATION

  12. Slide 12: Overview of 2022 Financial Metrics

    Overview of 2022 Financial Metrics 2022 2021 Net Profit J$16.38B J$17.40B Revenue J$97.10B J$102.56B Efficiency 34% 32% Group Total Assets J$519M J$528M Earnings Per Stock Unit J$4.19 J$4.46 Return On Equity 14% 16% Stockholders’ Equity J$113.87B J$114.82B Dividend Per Share J$1.60 J$1.11 IMPACT | I

  13. Slide 13: Industry Ratings – Sagicor Life Jamaica

    Industry Ratings Sagicor Life Jamaica A.M. Best A- Stable CariCRIS (Excellent) OUTLOOK FINANCIAL STRENGTH RATING a- (Stable) jmAA Sagicor Life Jamaica (Stable) ISSUER CREDIT JAMAICA NATIONAL • Strong earnings in core RATING SCALE - CariCRIS business lines • Favourable market position

  14. Slide 14: Industry Ratings – Sagicor Group Jamaica

    Industry Ratings Sagicor Group Jamaica CariA- Stable CariCRIS (Stable) OUTLOOK Credit Rating Retained Highest Credit FOREIGN Worthiness Rating CURRENCY For a Jamaican Company jmAA Sagicor Group Jamaica CariA jmAAA + • Leading Market Positions (Stable) (Stable) (Stable) • Strong Brand Equity LOCAL NA

  15. Slide 15: Business Unit Performance 2022

    Business Unit Performance 2022

  16. Slide 16: Business Segment Performance

    BUSINESS SEGMENT PERFORMANCE Sagicor Group Jamaica is a multi-line Financial Services Group. The Group’s profits are generated primarily from four large segments. Other Segment represents -5% of the overall group performance.

  17. Slide 17: Individual Insurance

    Individual Insurance Net Profit • Achieved J$8.74 billion in net profit in 2022. 9000 8,952 8,736 7,950 • The results were driven by exceptional new business sales and improved conservation of the 7500 in-force block of policies. In 2022, the Division’s block of in-force policies grew by 3%. 6000 5,

  18. Slide 18: Employee Benefits

    Employee Benefits Net Profit • Achieved J$4.1 billion in net profit in 2022, an 11% increase against 2021. 5500 • Group Health and Group Life premiums were 4400 4,288 4,154 4,093 4,053 13% and 18% above 2021 respectively. 3,667 • New Business from annuities, group life and 3300 health portfolios tot

  19. Slide 19: Sagicor Bank

    Sagicor Bank Net Profit • Achieved J$3.29 billion in net profit in 2022, 3500 3,268 3,294 an improvement ahead of 2021. 3,043 2,853 • Total assets of $192.88 billion were 10% 2800 above the December 2021 amount of 2,459 $175.02 billion. 2100 • Loans portfolio grew by 17%. J$M • Deposits portfolio gr

  20. Slide 20: Sagicor Investments

    Sagicor Investments Net Profit • Achieved J$1.2 billion in net profit in 2022. This 4.00 performance was impacted by the prevailing macroeconomic conditions that negatively impacted the 3.34 industry. 3.00 2.89 2.78 • In 2022, the opening of operations through Sagicor Investments Cayman Limited and

  21. Slide 21: Alliance Financial Services Limited

    Alliance Financial Services Limited SGJ owns 100% stake in AFSL • SGJ acquired AFSL as of March 1, 2022, and restarted its operations on April 4, 2022. • Diversification of SGJ product offerings into money services • Total revenue amounted to J$697 million for the nine months of operations in 2022.

  22. Slide 22: Other Interests

    Other Interests SGJ owns 60% stake in Advantage SGJ owns 50% stake in General Insurance Company through its Sagicor Costa Rica subsidiary SIJ • Achieved US$5.7 million in net profit • Achieved J$303 million in net profit in in 2022 2022 • Total revenue of US$20.4 million • Total revenue of J$4.32 bi

  23. Slide 23: Off-Balance Sheet Assets Under Management

    Off-Balance Sheet Assets Under Management • The financial market challenges impacted the performance of the Sigma Global Funds over the 12-month period. • Despite the challenges, Sigma Real Growth and Sigma Global Venture provided returns of 13.8% and 10.6% respectively. • The top performing pooled

  24. Slide 24: Other Key Indicators

    Other Key Indicators • MCCSR in 2022 was 209% for Sagicor Life Jamaica (above 150% regulated minimum) • Capital Adequacy Ratio in 2022 was 14.9% for Sagicor Investments Jamaica and 13% for Sagicor Bank Jamaica (above 10% regulated minimum for both) • Achieved 99% Brand Recognition in 2022, becoming

  25. Slide 25: Stock Market Performance

    Leveraging ot san ENG PPS -)ile CAPITALIZING _ opportunities S Stock Market Performance Sagicor Group Jamaica

  26. Slide 26: Selected Listed Companies by Market Capitalization

    Selected Listed Companies by Market Capitalization Dec 2022 v Dec 2021 2022 2021 SGJ improved its position to Sagicor 232.1 227.5 THE LARGEST FINANCIAL NCBFG 194.9 CONGLOMERATE ON 320.6 THE JAMAICA STOCK Scotia 107.3 EXCHANGE IN 2022 113.2 (measured in terms of market 61.0 PanJam capitalization) 72.

  27. Slide 27: Net Profit of Select Listed Companies

    Net Profit of Select Listed Companies J$ billions 2022 2021 16.4 SGJ 17.40 27.3 NCB 14.23 11.7 BNS 8.41 IMPACT | INNOVATION | TRANSFORMATION

  28. Slide 28: Building a Transformative Culture

    Building a TRANSFORMATIVE culture in which team members thrive Sagicor Group Jamaica

  29. Slide 29: Client Satisfaction

    Client Satisfaction 47.6% Net Promoter Score (NPS) among the best scores globally 90% Overall Quality Score 98.6% Complaint Resolution Rate 7.6 Customer Effort Score (CES) IMPACT | INNOVATION | TRANSFORMATION

  30. Slide 30: Group HR 2023 Focus

    Group HR will work relentlessly in 2023 to serve, prioritize and optimize the company’s people; driving and embedding a culture that attracts, engages and retains the best talent and preparing our existing workforce for the roles and mindset of the future.

  31. Slide 31: Team Welfare

    Team Welfare The work environment continues to evolve and is doing so at a rapid pace. It is important that Sagicor remains proactive in engaging its workforce. Team engagement continues to be an integral part of our DNA. IMPACT | INNOVATION | TRANSFORMATION

  32. Slide 32: Team Wellness

    Team Wellness In 2022, we: • Launched Sage Hub – a best-in- class co-working space for team members with collaboration rooms, working nooks, office rentals and learning and development spaces • Facilitated and encouraged Resilient Leadership through the upskilling of people leaders; • Competitively

  33. Slide 33: Other Highlights of 2022

    Other Highlights of 2022 PriceSmart Partnership launched in April 2022 CareShield product launched (SBJ & SLJ partnership offering credit card clients insurance coverage) Over J$52 million raised for Sigma Run beneficiaries

  34. Slide 34: Sagicor Foundation

    CARING INSPIRING SERVING | HEART OF SAGICOR’S CORPORATE SOCIAL RESPONSIBILITY S Sagicor Foundation Sagicor Group Jamaica

  35. Slide 35: Sagicor Foundation Charitable Donations

    SGJ, primarily through its charitable arm – Sagicor Foundation continued to reaffirm its commitment to improving the lives of the people in the communities in which it operates. Total 2022 Charitable Donations

  36. Slide 36: Total 2022 Charitable Donations

    @ $33. | $25. to Scholarship Programme to Basic School Renovation $2.5.m |$2.5.4m | $3.5+m UTECH Teach Di Youths Summer Camp Desktop Computers for Support Camp Activities Liberty Academy approx. donation for laptops and tablets on S6 5 0,0 0 1) behalf of Sigma Run 2022 patron Olympic hurdler Megan T

  37. Slide 37: Investment in Education

    Investment in Education In 2022, the Foundation invested over $33 million in its Scholarship Programme. Scholarships are provided to students at the tertiary and secondary levels. 114 new scholarships were awarded to support the academic journeys of 90 tertiary students and 24 secondary students. AD

  38. Slide 38: Investment in Education

    Investment in Education Sagicor Foundation also sponsored the Joy Town Community Development Foundation’s Youth with GRIT Behavior Modification School Programme which engages high school students in Trench Town by providing them with academic support, conflict resolution strategies, and life skills.

  39. Slide 39: Environmental, Social and Governance (ESG)

    Environmental, Social and Governance (ESG) • SGJ embraces environmentally sustainable business practices. • We commenced this process in 2021 with the introduction of an Environmental and Social Management Policy implemented by SBJ, which was developed and guided by the International Finance Coopera

  40. Slide 40: Future Ready Now!

    …And into 2023 FUTURE READY NOW!

  41. Slide 41: Our Strategy

    Our Strategy In 2023, Sagicor Group Jamaica will be guided by six (6) strategic pillars which facilitate alignment across the Group and will propel growth and increase stockholders’ value.

  42. Slide 42: Introduction of the IFRS 17 Standard

    Introduction of the IFRS 17 Standard • IFRS 17 is a new standard being applied • IFRS 17 does not affect the underlying globally and replaces IFRS 4. fundamentals of our business, strategy, or operations. • It came into effect on Jan. 1, 2023 • It improves transparency for the sources • It establish

  43. Slide 43: Introduction of the IFRS 17 Standard (cont'd)

    Introduction of the IFRS 17 Standard (cont’d) • Long-Term Insurance and Short-Term • Assets and liabilities will be measured at Insurance segments replace the current value. As such, fair value gains or Individual Life and Employee Benefits losses on assets backing insurance liabilities Division seg

  44. Slide 44: Our Outlook

    Our Outlook Sagicor Group Jamaica maintains an unwaveringly positive 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, an

  45. Slide 45: Thank You

    S Sagicor Group Jamaica THANK YOU

Sagicor Group Jamaica — Shareholder Meeting (May 2023) on 6ix