Sagicor puts its stamp on Jamaica

Published: Friday June 6, 2008

Earlier this week Life of Jamaica (LOJ) founded by Danny R Williams in 1970 with Richard Byles serving as its president and CEO today made the transition to Sagicor Life Jamaica Limited thus becoming part of the largest indigenous Caribbean finance house.

The ceremony was marked by much nostalgia for Jamaica's largest life insurance entity but the act itself is symptomatic of what the Caribbean Single Market and Economy (CSME) is all about - regional companies coming together to form sound conglomerates placed on a solid financial footing.

Sagicor took note of LOJ's potential and in 2001 purchased a majority stake in the Jamaican life insurance giant.

Sagicor's input since then cannot be discounted. Speaking at the Sagicor Launch Ceremony on Monday, Sagicor Life (Jamaica) president and CEO, Richard Byles said: "Indeed since then we have embarked on possibly the most successful period in our history to date. Over the past six years of Sagicor's involvement with LOJ, profits have grown from J$232 million to J$2.95 billion. We have doubled our customer base, we have become the leader in every market segment in which we compete and we have earned three consecutive ratings of 'A' Excellent from AM Best, the only insurance company in Jamaica to achieve this feat.

"During this time, Sagicor's growth has also been phenomenal. From a strong financial base across the Caribbean and Central America, they have entered international markets in the US and the UK, forging a global network in 22 countries. Sagicor is now truly an internationally recognised brand in the insurance industry. You only have to walk the floors of Lloyds of London to see the Sagicor sign amongst the giants like AIG."

Byles went on to point out that in today's world and more so in tomorrow's world, international brand recognition has tremendous value. This is especially so for financial institutions.

"It reassures our clients that they have the protection, the support, the knowledge and the experience of a global company. That is why we are rebranding LOJ to Sagicor Life Jamaica Ltd, to make explicit and clear to our customers that they have not just put their trust in a great Jamaican company, but in an international company owned by Caribbean people, including Jamaicans, a company that is strong enough and old enough to compete all over the world. By being an international company, Sagicor has diversified its financial risk and made every customer safer than ever, said Byles.

And what kind of company is LOJ becoming a part of?

For the three-month period ended March 31, 2008, the Sagicor Group recorded an overall net income of US$20 million, an increase on the US$16 million posted for the same period last year. Net income attributable to shareholders totalled US$13.5 million, which represents an increase of 36.4 per cent over the corresponding amount in 2007.

Total revenue for the period under review came in at US$225.4 million, up on the US$166 million for the same period last year.

Net premium revenue for the quarter totalled US$139 million, which represents an increase of US$42.3 million when compared with the first quarter in 2007. Sagicor at Lloyd's, which was acquired during the third quarter of 2007, contributed US$29.9 million in net premium revenue for the period, while other operating subsidiaries contributed US$12.4 million in premium growth, representing for them an increase of 12.8 per cent over 2007.

Net investment and other income for the period was US$81.4 million, an increase of 17.1 per cent over 2007. Benefits reached US$118.1 million for the period, an increase of US$26.6 million when compared with 2007. Sagicor at Lloyd's contributed US$13.1 million in property and casualty benefits during the period. Expenses also increased over first quarter 2007, a major component being the distribution costs associated with Sagicor at Lloyds'.

Sagicor's total assets stand at US$3.81 billion a slight jump on the US$3.64 billion, posted for the corresponding period last year. Total liabilities, including policy liabilities, came in at US$3.2 billion with the group recording shareholders' equity at US$463.5 million. Total equity was US$600.8 million. Annualised return on shareholders' equity for the period under review was 11.9 per cent.

Sagicor has for some time now been in acquisition mode and the quarter under review was no exception. This year has seen Sagicor acquiring the Caribbean insurance portfolio of Industrial Alliance Insurance and Financial services Inc. This portfolio, which is concentrated in Curacao and Aruba, has approximately 11,000 life insurance policies, assets of US$53.6 million and a strong distribution network.

This year also saw Sagicor acquiring a 77 per cent interest in Barbados Farms Limited, a publicly listed company in Barbados, which is engaged in agriculture and property development. The acquisition price was US$39.7 million.

Speaking at the rebranding ceremony held at the Life of Jamaica Centre in New Kingston, president and CEO OF Sagicor Financial Corporation, Dodridge Miller said:

"For most of our existence, we in the Caribbean including Jamaica have been the customers of financial institutions whose mind and management, heart and souls existed in locations beyond our shores. The products and services that we so readily consumed were not designed specifically to meet our local or regional needs nor were they designed to fit with our state of economic or social development. More often than not, these products were designed for another place and were sold to us as an extension of those local markets. In this regards we purchased what was offered to us rather than source what was best for us, and very often the two did not meet. In many ways our social and economic development were at the mercy of those institutions and were often significantly influenced by faceless individuals who had no connection to or long-term interest in our region.

This is why in the 1970s men of vision such as the Hon Danny Williams here in Jamaica, the late Cecil de Caries in Barbados and several others of similar mind started a movement to create Caribbean financial institutions with the knowledge and expertise to deliver quality products and services to our region; to create institutions which could be an integral part of our social and economic development.

This was indeed a new paradigm; a new way of seeing ourselves not merely as consumers of foreign products, but creators and shapers of our own destiny. We owe much to these men, for they laid the foundation for much of the success that we are enjoying today.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20080605T230000-0500_136449_OBS_SAGICOR_PUTS_ITS_STAMP_ON_JAMAICA_.asp