Sagicor Financial Company (SFC) Q1 2026 earnings summary

Executive summary

• Q1 2026 core earnings to shareholders were $24.9 million, down 16% year-over-year, impacted by $8 million of negative core insurance experience, mainly due to higher mortality in North America.

• Reported net loss to shareholders was $34.4 million, driven by $49 million of market experience losses from lower asset prices in U.S. and Canadian fixed income and equity markets, and one-time items.

• Core basic EPS was 18.4¢, a 16% decrease year-over-year.

• Strategic initiatives are progressing, including hiring a new U.S. subsidiary president and advancing the Caribbean business merger.

• Management reiterated 2027 and 2028 core ROE targets of 14% and 15%, respectively.

Financial highlights

• Core ROE was 9.9%; adjusted for insurance experience losses, core ROE would have been about 13%.

• New business CSM was $36.7 million; deployable capital stood at $2.1 billion ($15.47 per share).

• Book value per share was $7.18 (US$) and $10.01 (C$); group LICAT ratio was 134%; financial leverage ratio was 27.5%.

• Shareholders' equity increased 2% year-over-year to $977.6 million.

• 26th consecutive quarterly dividend declared at $0.075 per share.

Outlook and guidance

• Management expects market experience gains and losses to trend to nil over time, with underlying business fundamentals remaining sound.

• Q2 2026 is expected to see normalization in mortality and a mild positive impact from market volatility if current trends persist.

• ROE run rate guidance remains at approximately 13% for the near term.

• Strategic initiatives are progressing, with long-term ROE targets reaffirmed.