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Sagicor delivers best results since 2008
The Sagicor Group experienced improvements in revenue, net income and equity during the 2017 financial year. Group net income was US$115.3 million, compared to US$109.3 million in the prior year—an increase of US$60 million.
President and CEO of Sagicor’s International Operations Ravi Rambarran, in outlining the international environment in which the company operated, said there was increased economic growth of 3.1 per cent compared to 2.4 per cent. However, this masked natural disasters and geopolitical tensions, which were the two sources of shocks in the global economy. In the Caribbean environment, he said, there was a stark contrast.
“All countries experienced lower economic growth with the exception of Trinidad and Tobago which experienced a decline. All countries in the Caribbean have unsustainable fiscal deficits and debt stocks and they are all trying to manage through various combinations of tax increases, cuts in public expenditure and they are engaging in that fiscal austerity at different speeds,” Rambarran said.
He also noted the region’s reduced ability to generate foreign currency cash flows.
Given these factors, Rambarran said, it was Sagicor’s best financial performance since 2008, adding that the company continues to maintain solvency standards significantly above required levels and maintained international rating.
To hedge against foreign losses in T&T, Rambarran said there is a clause where investments can be made in foreign assets. He said while there might be constraints to convert TT dollars to US, Sagicor’s operations in foreign countries compensates, resulting in an overall net positive.
Commenting on how last year’s devastating hurricanes had affected the company’s performance Rambaran said: “There’s a provision for all losses arising from the hurricanes, which is US$8.5 million.”
Asked whether it was possible for dividends to be paid in the US currency in which they are declared rather local currency, Dodridge Miller Group President and CEO explained: “What you’re seeing is a reporting currency as against an operating environment. We report in US dollars but all of our operations, except in the US operate, in local currency.”
Chairman Stephen McNamara said net income attributable to shareholders was US$72.2 million, compared to US$61.7 million in the prior year, an increase of US$10.5 million. Earnings per common share was US23.7 cents and represented an annualised return on common shareholders’ equity of 13.3 per cent compared to 12.6 per cent for the previous year.
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