Sagicor Financial Company posted solid earnings growth in 2024, driven by its first full year of operations in Canada following its acquisition of ivari.
The financial services provider, which operates in Canada, the US and the Caribbean, reported core earnings to shareholders of $90.9 million for the year – an 84% increase from 2023.
The company’s fourth-quarter core earnings reached $28 million, up 28% year-over-year, while net income to shareholders totaled $97.5 million for 2024. Core return on shareholders’ equity stood at 9.6% for the full year and 11.7% in Q4, highlighting Sagicor’s improving profitability.
Sagicor’s insurance operations played a key role in its performance, with new business contractual service margin, a key measure of expected future profitability, hitting $166.3 million for the year. The company said it remains well-capitalized, reporting a Group-LICAT ratio of 139% and a financial leverage ratio of 27.3%.
The company also repurchased 3.0 million shares in 2024 at a discount to book value, contributing to a 4% reduction in share count. This move helped increase book value per share, which ended the year at US$7.08 (C$10.19).
Sagicor’s strong performance has enabled a 12.5% increase in its quarterly dividend to US$0.0675 per share, payable on April 17, 2025, to shareholders of record as of March 27.
The company is projecting further growth, with core basic earnings per share expected to reach $0.74 to $0.80 in 2025 and new business CSM targeted at $180 million to $200 million.
By 2026, Sagicor aims to grow core earnings by over 10% from 2025 and achieve a medium-term core return on shareholders’ equity above 13%.
President and CEO Andre Mousseau emphasized that Sagicor is making strategic investments to sustain growth. "Our annualized core ROE in Q4 demonstrates our potential for further earnings expansion in 2025 and beyond," he said. "We continue to focus on collaboration between operating segments, technology enhancements, and optimizing our cost of capital."
While economic uncertainty remains a factor, Sagicor’s capital strength, insurance expansion, and shareholder returns signal confidence in its long-term growth strategy.
