“Underpinning The Promise To Deliver Benefits To Customers”

Company Profile:

Stock Exchange: Jamaica

Company: Sagicor Group Jamaica Limited

2014 Rank: #10

Chairman: Dr. R.D. Williams, OJ
President & CEO: Richard O. Byles

Address: R. Danny Williams Building
28-48 Barbados Avenue,
Kingston 5, Jamaica, W.I.

Telephone: (876) 929-8920-9
Toll Free: 1-888-SAGICOR
Fax No: (876) 929-4730
Email: infoja@sagicor.com
Website: www.sagicorjamaica.com

Sagicor Group Jamaica Limited (SGJ or the Group), formerly Sagicor Life Group of companies, is a leading financial services group in Jamaica, commanding the largest market share in many of the lines of business it operates.

In December 2013, Sagicor Life Jamaica Limited (Sagicor Life) completed phase one of the reorganisation of the Sagicor Jamaica Group with the formation of an upstream holding company, Sagicor Group Jamaica Limited, which will eventually become the ultimate holding company, of all the Jamaican operations of the brand Sagicor when phase two is completed. This reorganisation will enable the Group to improve its management of capital and to align its organisational structure with the requirements of the new omnibus legislation for deposit-taking institutions.

The following edited extract was taken from the company’s 2013 Annual Report to shareholders.

Our Team delivered net profits of $6.3 billion, which is 7% above 2012 and our fourteenth consecutive year of profit growth. Revenues were $42.4 billion, an improvement of 19% over 2012. We provided $15.75 billion of insurance and annuity benefits to our customers and their families in 2013. In addition, we managed the GEASO and GPASO health business on behalf of the Government of Jamaica and the largest pool of pension funds in Jamaica. These are major businesses from which we pay out another almost $10 billion annually.

Our investment funds outperformed their respective benchmarks for the most part and some were the best performers in their asset class.

Underpinning our promise to deliver promised benefits to our customers is a strong balance sheet. In 2013 our assets grew 14% to $198 billion and capital improved by 9% to $35.9 billion after paying a dividend of $1.5 billion to our 8,312 shareholders. Regulated companies of the group continue to exceed the risk-adjusted capital required by our regulators.

In 2013 we begun a group reorganization exercise to comply with the new Omnibus Banking Bill, which is expected to be passed in Parliament by June 2014.

The first phase of the reorganisation involved the establishment of a group holding company, Sagicor Group Jamaica Ltd (SGJ), and the change of ownership of our two overseas subsidiaries in Cayman and Costa Rica from Sagicor Life Jamaica to the holding company, Sagicor Group Jamaica. All the shareholders of SLJ are now shareholders of SGJ.

The second phase will see Sagicor Investments Ltd (SIJ) and Sagicor Bank Ltd (SBJ) also being transferred to the holding company SGJ. This will take place in May 2014.

Outlook for 2014
Jamaica has successfully completed the first three quarters of the four-year IMF programme. In so doing several significant milestones were achieved, including:

• A reformed tax system to improve the competitiveness of some sectors;

• Considerable strengthening of the Fiscal Rule to enhance fiscal transparency and lock in fiscal gains;

• Much-improved fiscal accounts;

• Considerable progress towards a more competitive exchange rate.

This success has come at a cost to the Jamaican consumer and there is still a long way to go to stabilize the Jamaican economy. Notwithstanding the long journey ahead of us, at Sagicor, our confidence has been bolstered and that is why we have made the decision to invest through the acquisition of RBC Jamaica for our shareholders and in the hotel business for our pension clients. We look forward to 2014 with cautious optimism.BM
Chairman: Dr. R.D. Williams, OJ