Trinidad and Tobagoeastern life

Main activities of the segment into which Trinidad and Tobago lls are the provision of life and health insurance, retirement accumulation savings, annuities, mortgages, pension investment and pension administration services.

These forecasts came during a video conference with media representatives in Barbados and Trinidad on May 18. Local media assembled at Sagicors board room at Queens Park East, Port-of-Spain.

In 2010 the segment generated (US)$311 million in total revenue, a marginal increase over the previous year. Net premium revenue increased to (US)$216 million, with growth being recorded in Trinidad and Tobago and the Dutch Caribbean markets.

The proposed strategic partnership, which would be implemented by way of a subscription for shares in the company, would also provide the company with additional long term capital to pursue its regional growth and expansion strategy and would cement the position of the Sagicor Group as the leading provider of insurance and ancillary financial services in the Caribbean.

Going forward, he said, We expect that the region will gradually emerge from the global economic downturn and returnTrinidad and Tobagoeastern life to a period of modest growth.

Net benefits incurred in 2010 totalled (US)$185 million advancing upwards from (US)$173 million in 2009. Compared to 2009, declining investments yields was a feature in most of the territories and this impacted the actuarial assumptions used for valuation of life insurance and annuity liabilities, generating a higher liability as a result.

The high losses resulted from several natural catastrophes which impacted negatively on the global P&C industry of which Sagicor is part. There were the Australian floods, Australian cyclone Yasi, and the New Zealand and Japanese earthquakes, all within the first quarter. However, the company has established claims reserves and has adequate resources and capital to meet its obligations.

By Vernon Khelawan Thursday, May 26 2011

Despite a staggering US$36.2 mieastern life and healthllion incurred by its casualty subsidiary, Sagicor at Lloyds in the United Kingdom in the first quarter of 2011, an optimistic Group president and chief executive officer Dodridge Miller still expects Sagicor Financial Corporation (SFC) to record a profit for the current financial year and even to maintain its dividend.

The subscription price the IFC is prepared to pay for the preference shares is US$1.00 per convertible redeemable preference share and IFC is prepared to invest up to US$80 million in new preference shares. It was also agreed that a reasonable conversion price for the conversion of new preference shares into common shares at any time within five years of issue would be US$1.98, which is the equivalent of the book value per share as at December 31, 2010.

According to the annual report, Sagicor Life Inc, recorded total comprehensive income attributable to shareholders of US$30 million in 2010, a reduction from the 2009 results of US$44 million. And in a letter to shareholders regarding the signing on March 31 last of a Subscription Agreement and a Policy Agr-eement valued under which the IFC would invest up to US$100 million in Sagicor. The investment would take the form of US$20 million in new common shares at the price of US$1.63 per share which exceeds the market prices of Bds$3.06 on the Barbados Stock Exchange; $8.50 on the Trinidad and Tobago Stock Exchange and 97.50 pence on the London Stock Exchange respectively as at March 31.

Sagicors operations in Trinidad and Tobago take place within the larger Sagicor Life Incorporated segment, which also conducts business in Barbados, the Eastern and Dutch Caribbean islands, Belize and Panama. Other segments are Sagicor Life Jamaica; Sagicor Europe (Sagicor at Lloyds); Sagicor USA and other operating companies.

The letter also advises shareholders that Sagicor and IFC intended to develop a significant partnership, which the Directors believe would be very advantageous to the company.

The issue of new preference shares is subject to shareholders adopting amendments to Sagicors Restated Articles of Incorporation to provide for the creation of a new class of preference called Convertible Rede-emable Preference Shares. This matter is on the agenda for the companys Annual General Meeting scheduled to take place in Barbados on June 2 at the Hilton Barbados beginning at 5.30 pm.

Trinidad and Tobagoeastern life,The high optimism is propelled by chairman Stephen McNamara, who, in his statement relative to the first quarter results said: The global economy having emerged from recession, the markets in which Sagicor operates are showing promising signs of positive economic activity. This, will in turn, not only support the Groups return to previous levels of profitability, but also provide the opportunity for continued profitable growth in our operations.

But UK losses apart, the remainder of the Group produced relatively strong results, posting net income before taxes of (US)$28.9 million for the quarter compared with US$25.5 million in the corresponding period last year. Total revenue for the period increased to US$345.9 million, up from US$292.5 million in 2010.

Chairman McNamara said while he believed 2011 would be a year of modest growth for the global economy, he admitted the economies of the small island Caribbean states continued to experience difficulty during 2010 as they await the benefits of the global upturn to manifest themselves in the region.

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