Sagicor Group Jamaica reports that its consolidated net profit attributable to shareholders, totaling $17.4 billion for the year ended December 31, 2021, is its highest yet.
Sagicor generated profit on total revenue of $102.56 billion, growing 21% or $17.99 billion year-over-year. Its market capitalization also improved, from $195.1 billion in 2020 to $227.5 billion in 2021, a 17% increase from the previous period.
Sagicor Group Jamaica President and CEO Christopher Zacca said the company’s business areas have performed very well across the board, despite the challenges posed by the pandemic.
The company is now optimistic about introducing new revenue lines to grow its business. The imminent acquisition of Alliance Financial Services is a key element of its growth strategy.
“We are well advanced (regulatory approvals), and so far so good. There is strong support for the restart of Alliance Financial. We are very positive about this transaction,” Zacca said.
Zacca said Sagicor was very optimistic about the remittance and cambio space in Jamaica.
“We believe that this sector will continue to be dynamic in the years to come. And as long as we keep up with the technology around this space and with partners like Moneygram, I think we’ll be successful for the foreseeable future,” Zacca said during a briefing to discuss Sagicor’s financial performance on Thursday.
In addition to money transfer and cambio services, the acquisition of Alliance would enable Sagicor to offer prepaid cards and digital wallets. This after ending its MyCash partnership with Digicel.
MyCash, a MasterCard-branded prepaid card, has been paired with a mobile app to help customers manage their money, make payments and transfer funds locally and from the United States.
“Part of the business strategy is to have much more sophisticated payment products than MyCash, and I think doing it on our own will fit into that strategy in a much more comprehensive way,” Zacca said.
He added: “I see the MyCash transition as a step in improving our offerings to our customers.”
Regarding additional growth areas, Zacca said, “Sagicor Investments Cayman is now operational and licensed, and you will see growth in this area this year. And we are constantly studying the Central American insurance market, with which we have a partner. »
In the last quarter of the year, the group recorded net profits of $4.37 billion, a 27% increase over the previous year.
The individual life business continued to experience strong new business sales and portfolio growth during the year. Sagcior’s commercial and investment banking segments benefited from improvements in business activity due to economic growth.
“Our employee benefits segment experienced higher claims levels in 2021 compared to the prior year as COVID-19 continued to impact the overall health of our customers,” Sagicor said.
Net premium income of $52.78 billion increased 5% year over year. This was largely due to strong new business sales in the individual life insurance and employee benefits segments.
Growth in the group’s interest-earning asset base contributed to a 6% increase in net investment income, from $18.12 billion in 2020 to $19.24 billion for the current year.
Rising medical costs and increased death claims were the main contributors to the $2.31 billion or 7% increase in net benefit spending, Sagicor said.
Meanwhile, the commercial banking segment ended 2021 with a net profit of $3.27 billion, a 32% increase from 2020.
The segment saw a significant increase in transaction volumes and demand for credit cards, as well as significant loan loss recovery in 2021, which led to lower ECLs and loan provisions.
The Group’s total assets as of December 2021 stood at $527.99 billion, eight percent higher than $490.69 billion in December 2020.