“Sagicor Is Optimistic About Results For 2014”

Company Profile:

Stock Exchange: Barbados, Trinidad and Tobago and London
Company: Sagicor Financial Corporation

2014 Rank: #2

Non-Executive Chairman: Stephen McNamara

Group President and Chief Executive Officer: Dodridge Miller

Address: Sagicor Corporate Centre
Wildey, St. Michael
Barbados
Phone: (246) 467-7500
Fax: (246) 436-8829
Email: info@sagicor.com
Website: www.sagicor.com

Sagicor is synonymous with world-class financial services. The company’s vision is “To be a great company committed to improving the lives of the people in the communities in which we operate.”

With a proud history dating back to 1840, Sagicor is a dynamic, indigenous Group which has been redefining financial services in the Caribbean, building a strong base from which it has expanded into the international financial services market.

Sagicor now operates in 22 countries in the Caribbean, Latin America, the United Kingdom and the United States. In 2002, after 162 years as the Barbados Mutual Life Assurance Society, the company demutualised with the overwhelming support of its policyholders, and Sagicor Financial Corporation was formed as a publicly listed holding company. Sagicor, the new company name, means “wise judgment” and reflects a new vision for financial advice and services. For over 168 years, Sagicor has worked to help families by providing the assurance and peace of mind needed, especially during their most challenging times. This will never change.

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

Key factors which influenced 2013 performance:

 Sale of Sagicor Europe
 Debt restructuring in Jamaica (NDX)
 Debt impairment in Grenada
 Low interest rates across all countries
 General weak economic activity.

The Sagicor Group’s operations comprising our businesses in the Caribbean and in the USA, continued to perform well. Net income from continuing operations of US$79.6 million was realised for the year ended December 31, 2013, (US$75.3 million for 2012) after accounting for capital losses of US$22.0 million through the Group’s participation in the Government of Jamaica National Debt Exchange (NDX), and impairment provisions on Government of Grenada bonds.

On July 29, 2013, the company entered into an agreement to sell Sagicor Europe (SEL) and its subsidiaries AmTrust Financial Services, Inc. (AmTrust), subject to regulatory approvals. Final regulatory approvals were obtained on December 23, 2013, on which date the sale was completed. The operations of the Sagicor Europe operating segments are presented as discontinued operations in the financial statements. The terms of the sale required Sagicor to retain an interest in the run-off of the 2011, 2012 and 2013 underwriting years of the account after the syndicate has been formally sold and is subject to a limit.

The Sagicor Group’s experience during our ownership of Sagicor at Lloyds was particularly challenging. Weak operating results from this segment over the years and a protracted sales process combined to impact shareholders’ equity negatively. On the positive side, despite a challenging economic environment, the Caribbean and USA operations continue to grow and to produce positive results for shareholders.

On January 29, 2014, Sagicor Group Jamaica Limited signed a Sales and Purchase Agreement to acquire all of the issued shares of RBC Royal Bank (Jamaica) Limited and RBTT Securities Jamaica Limited (collectively “RBC Jamaica”) from Royal Bank of Canada. The acquisition is subject to regulatory approvals. At December 2013, RBC Jamaica had total assets of US$509 million.

Outlook for 2014
 The Global economy is expected to continue to improve;
 Growth is forecasted at 3.6%
 Weak economic conditions in Caribbean economies (excluding Trinidad)are expected to continue through 2014;
 Jamaican economy is expected to experience further improvements
 Jamaica’s currency will depreciate but at a slower rate.

Sagicor will continue to restructure to reduce operating cost;
 Grow revenue;
 Remain positively exposed to rising interest rates;
 Optimistic about our results for 2014.
BM
Stephen McNamara Non-Executive Chairman