Sagicor Group Reporting Total 6 Month Revenue Of US$639M An Increase Of 14% On The US$563M Reported For 2017.
Stephen McNamara Chairman of the Sagicor Group is reporting that the company maintained a solid performance for the six months to June 30, 2018,
Total revenue for the Group amounted to US$639 million, against a prior year amount of US$563 million, an increase of 14%.
The growth in revenue, he reported was mainly due to the growth in premiums in the USA segment, where the gross premiums were US$114 million, compared to US$88 million for the same period in the prior year, an increase of 29%.
Group comprehensive income was a loss of US$17 million, compared to an income of US$63 million for the prior year.
Shareholder comprehensive income was a loss of US$9.6 million, compared to an income of US$37.8 million for the prior year.
The decline in comprehensive income was mainly due to marked to market declines on their international bond portfolio.
Expenses were US$286.9 million, compared to US$224.3 million for the same period in the prior year, an increase of 28%.
Expenses include the provision for losses on all assets arising from the adoption of IFRS 9, and were largely driven by the provision for the Government of Barbados securities.
Commenting further on this, the Chairman pointed shareholders to the Government of Barbados announced intention in June, to suspend all payments to creditors of its external commercial debt, which is denominated primarily in US dollars, and its plans to maintain interest-only payments on its domestic debt, which is denominated in Barbados dollars.
The Government of Barbados, he reported, also commenced discussions with the International Monetary Fund (IMF) for technical and financial assistance to agree a programme with the primary objective of fiscal sustainability.
A key element of the plan will be a formal and voluntary restructuring of the Government of Barbados debt.
As a result, until the IMF programme is approved, he said, Sagicor has increased its provision for expected losses on Government of Barbados debt in accordance with IFRS 9.
Mr. McNamara indicated that the Sagicor Group was in support of the initiatives to restore stability and growth to the Barbadian economy, and will continue to engage with policymakers.