36A
WEDNESDAY, JUNE 10, 2015. MIDWEEK NATION
SAGICOR GENERAL INSURANCE INC.
Summary Financial Statements
Year Ended December 37, 2074
Sagicor
GENERAL
Chairman and CEO’s Summary
was a moderate year afachievement for Sagicor General with the company recording net
income of S6.4M and delivering a return on eqaity of 8,6%. The balance sheet was
strengthened but an increasingly competitive industry market along with continued regional
economic sluggishness challenged our ability to achieve meaningful growth.
2014
Overall, tIre company recorded net income far the year after income taxes of 86.4M, the
result having been rregatively irripacted by a higher effective tao rate over 2013 due to a tao
adjustment for St. Lucia and a deferred tao peesion adjustment for Barbados,
In August 2014 AM. Best Company Inc. reaffirmed the company’s A- (Excellent) financial
rating, following an extensive annual review and consultation. The rating reflects the
company’s, historically profitable operating performance, prudent underwriting leverage,
regional market presence and parental support’.
The company’s balance sheet continues to strengthen, with total assets reaching $z24.6M
at December31 2014, up from S 218.2M at the end 012013. A dividend ofS4.oM relating to
the 2013 financial year was declared during the year. With retained earnings increasing by
$3.5M, total equity has improved, moving from $.iM at end of year 2013 to 578.oM at
December 2014.
The company recorded a marginal increase in gross written premium dunng 2014 moving
from S126.8M in 2013 to 5t27.7M in 2014. Whatever positive steps were made by the company
in attracting new business, were eroded by the necessity to reduce premium rates in an effort
to secure our existing portfolios. In all territories, where prudence indicated that pricing paints
were inappropriate for the risks we were renewing, we declined further part cipation. This
underwriting vigilance has again been confirmed by the company’s excellent overall loss ratio
In zor 5 we will continue to focus on innovation within our business in order to secure greater
market share and to meet customers’ demands. With this in mind, it is our intention to
introduce a revolutionary product to the market which is anticipated will allow us to compete
effectively and maximise insured value. While we position ourselves for growth in the years
ahead, our efforts must be conducted in a manner which continues to deliver strong profits
to our reinsurers and shareholders, while preserving the integnty of our brand.
0141.6%.
Our claims performaece onerall remains credible although the loss ratio rose from 38.0% in
2013 to 41.6% in 2014, representing an increase in claims activity ofapproximately $t.7M over
last year
The investment portfolio returned a healthy 20.6% or $888K increase in income over the 2013
financial year. The portfolio was however, adversely affected by our share of the operating loss
recorded by Globe Finance Inc., in which the company holds a 20% shareholding. The
company’s investment philosophy continaes to be conservative.
General and administrative expenses which had recorded a substantial increase in 2013 due
primarily to salary adjustments and relocation costs in Trinidad and Barbados, increased by
just over S8ooK in 2014. Management continues to work to reduce our expense ratio.
Chief Enecarrve Officer
Chairman
SAGICOR GENERAL INSURANCE INC.
STATEMENT OF FINANCIAL POSITION
‘ulpu
As 01December31,
2014
Amounts expressed in Bsthadoo $ooo
WrSu.
-
..J...11y
..a?*..
.s*...o’.rn..s
0014
.
Sn..
..,*nflL t*aaJa...4 I,a_
•
..
Iq .e, W4 sod .-i... aba s
.h.m, rd.
—
a. a
a I
-s.reeqx.b
,._
4— dN.d
.—‘.
8,’.
aorlJa8. lmfr Wt GI t.es.a.sa..
i so. .a’
1. s*4
...s.’.lb”o 5.05,
R’ISld Se a-IS.
rh.a’Sd S*uso
4*
a’ 8....
s.,IISWed
a- .a... ‘.p..’
“a—i
.
.I’•s S’..eemp.I
-
-
—
1’r r
ASSEtS
Property, plant and equipment
Investment is associated company
Financial investments
neinsurance assets
Income tax assets
Premiums receivable and deferred acquisition costs
Miscellaneous assets and receivables
Oepositx with $agicor Croop companies
Cash
a,wss.o.eohe.
•
14
I.
case,.....
-
___I,
.
—
and
cash
67,7Rm
s,R5i
616
375
.8,758
18,ayo
.,4,6.u
ns8,rp,
113,539
109.5r3
095
0,558
547
u4,866
eqvoalentx
Total assets
•m
•fle,j..
.w ea,0. ..n.q(Ss
U-’
alsoIS
s.
..IS*$, ‘O6 5b sb4.eeI
LIABtLITIES
Es
ha W..ha
a...
ta’s Se iISrsl
‘
fr.
tq’.s
.
-
Income tao liabilities
Dae to reinsurers, defemrals and premium tao payable
Amounts payable tu Sagiccr Group companies
Accounts payable and accrued liabilities
Total liabilities
07,970
a,555
5,303
146,671
dte.
è
•. .54.
55
apse
.
ThW.ö451
—5..
—
—
aø
-
‘‘,,
lea
5,so.b
-
F.
on
sose
IS’edIff•
I5.
543,059
EQUITY
Share capital
Cia. ,O
‘ha —
896
363
‘
as
Es
64,166
3o.nag
Policyholders’ liabilities
e
4,434
Ra,i47
.ea
ISE.eq
•a aeb
Esee. cm
16,134
4,164
iaa..
nfl..
seq rId
17,507
70,647
Retained earnings
3,000
3.000
27,870
47,007
08,560
Total equity
Total equity and ll.btll6en
43.573
77,957
75.135
aa4,6a8
ar8,r94
ri-sue’’.
These financial starements have been approord for issue by the Ruard of Diredurs on Apr.l 13,
0015.
I
rt—’_’
Director
2%, CtL
41.2j_.’_z
Direcror
MIDWEEK NATION. WEDNESDAY, JUNE 10, 2015 37A
SAGICOR GENERAL INSURANCE INC.
Summary Financial Statements
Year Ended December 37, 2014
Sagicor
GENERAL
SACICOR GENERAL INSURANCE INC.
SAGICOR GENERAL INSURANCE INC.
STATEMENT OF INCOME
Year ended December 3t,
STATEMENT OF COMPREHENSIVE INCOME
Year ended December
2014
3tr 2014
Amounts expressed in Barbados $ coo
Amounts expressed in Barbados $ coo
2014
2013
ia7,3i9
t,6,Bvi
REVENUE
Reinsura ncr expense
Net premium irvenue
Investment Income
Share of operating (loss) Income of associated company
Fees and oiler revenue
37,034
3,639
6r
5,448
(uso)
a7,7O
68,52r
Total revenue
CLAIMS INCURRED
4o.rff
Claims incurred
CL,msreinsured
6,430
9,896
37
(rIo))
(3741
(r,oyo)
1174)
OTHER COMPREHENSIVE INCOME
Items net of tax that may be reclassified subsequently to
Acaitable for sale finncal assets
Unreal ised gains (losses) arising on renalvarion
Gamy transferred to Income
Items ncr of tao that will not be reclassified subsequently to
r4,oq,
Net claIms incurred
04,990
24,488
15,819
15,609
842
667
43,063
42,275
INCOME BEFORE TAXES
9.435
10,699
NEt INCOME FOR THE YEAR
6,430
Unrealired lost arising on eevaloalion of property
Gains on defined benefit plans
Othar’comprehonsiee income for the year
Total expenses
2013
3t,607
111
EXPENSES
Administrative en
Commissons and related compnsaIron
Premium rates
Depreciation
NET INCOME FOR THE YEAR
0014
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(603)
0,003
411
r,6ao
41’)
350
43
6,780
9,94t
—-
SAGICOR GENERAL INSURANCE INC.
STATEMENT OF CASH FLOWS
Year ended December3i, 2014
SAGICOR GENERAL INSURANCE INC.
STATEMENT OF CHANGES IN EQUITY
Year ended December 31, 2014
Amounts expressed in Barbados Soon
Amounts expressed in Barbados S ooo
Year ended December 31,
Share
capital
0014
Retained
Reserves
,
Total
Cash Rows Bonn operotrng aefioftics
Income before tarts
Adlustmentn Ion non rash irrms, interest and divideeds
lnterrst and d,a dendr eece,ued
Icterest and dividends received frnm Sagicor Group
enr4
0013
9.4il
(3,43v)
3,3a6
ra,6g
)r,viq(
l3,ndr)
(3,696)
8,609
(y,Eng)
3,393
570
99237rj5
Balance, beginning of year
Total comprehensive iecome
Other movements
Dividends declared
t,rst
sy,Byo
3,000
Balance, end of year
8,633
(r,riS’(
(3.939)
(r,87)
.
‘
6,780
Income raves paid
Changes in operating assers
Changers operating lobules
(t.y53)
Net cash from operatIng adioities
47,°$7ThR57
Cash flows Inner rneeslrng art5oifi
Property, plant and equipment
Year ended December 31,
Net cash used in inorating acttoitles
Share
capital
Ba’aece, beginnIng of year
3,000
Total comprehensive income
Other movements
Dividends paid
Balance, end of year
Retained
earninos
Total
v7,779
36,96t
67640
(374)
tO,3i3
9,941
Reserves
t,i57
.____
--
-
—
-
_3r090___
SAGCOR GENERAL INSURANCE INC.
Summary Financial Statements
Year Ended December 33, 2014
__J3,fyrj
__Jan3J_
0013
(1,15;)
U3’L
vanfJ
a8,56v43_5,r35
Cash Rows from financing actioifies
Druideeds paid re shareholders
Net cash used in financing actIvitIes
(3,65r)
Ja,446J
(a.446L
_j4,yOf)
J4.97L
Nesinorease )deaease( in cash ted cash equinlentu
Cash and cash eqiiiaairnts, beg no ‘ug ofyear
ro,46R
)6,6yo)
r%.ap
a4.yty_
Caah and cash equivalents, end otyoae
a8,yS
18,090
Sagicor
%