This news release for Sagicor Financial Company Ltd. ("Sagicor Financial", "Sagicor" or the "Company") should be read in conjunction with the Company's Management's Discussion & Analysis ("MD&A") and the Condensed Consolidated Financial Statements for the period ended June 30, 2024. These documents are available on Sagicor's website, at www.sagicor.com, under the heading "Financials and Filings" and under Sagicor's profile at www.sedarplus.ca. This news release presents non-IFRS measures used by Sagicor in evaluating its results and measuring its performance. These non-IFRS measures are not standardized financial measures, are not included in the Condensed Consolidated Financial Statements, and may not be comparable to similar financial measures used by other companies. They include return on shareholders' equity ("ROE"), core earnings, book value per share, financial leverage ratio, total capital, revenues, contractual service margin ("CSM"), Minimum Continuing Capital and Surplus Requirement ("MCCSR") ratio, Group Life Insurance Capital Adequacy Test ("Group-LICAT"), new business CSM, new business production, total net CSM, shareholders' equity plus net CSM to shareholders, and net CSM to shareholders. See the "Non-IFRS and Other Financial Measures" section in this document for relevant information about such measures.   TORONTO and BARBADOS, Aug. 14, 2024 /CNW/ - Sagicor Financial Company Ltd. (TSX:SFC), a leading financial services provider in Canada, the United States and the Caribbean, today announced its results for the second quarter ended June 30, 2024. All figures are in US$ unless otherwise stated. Q2 Highlights Core earnings to shareholders(1) of $25.3 million Annualised core return on shareholders' equity(1) of 10.9% Net loss to shareholders of $40.2 million driven by adverse market experience New business CSM(1) of $40.1 million Shareholders' equity of $897.7 million, with book value per share of US$6.36 or C$8.71 Shareholders' equity plus net CSM to shareholders(1) of $2.0 billion, or US$14.51 or C$19.86 per share Financial leverage ratio(1) of 26.8% Group-LICAT ratio(1) of 138% MCCSR ratio(1) of 309% Dividend of US$0.06 per common share to be paid during the third quarter of 2024 (US$0.24 annualised dividend) Andre Mousseau, President and Chief Executive Officer, said: "We are pleased to announce our second quarter results with our revised and enhanced shareholder disclosure. Our new core earnings(1) framework will allow our investors to better understand the earnings generation of each of our operating segments. This enhanced disclosure will enable us to more meaningfully engage with the investment community and ultimately improve Sagicor's access to and cost of capital." "Sagicor delivered $25.3 million of core earnings to shareholders(1) in Q2, within the range of our expectations and aided in part by positive aggregate insurance experience from our operating subsidiaries. Our net income to shareholders was lower with a loss of $40.2 million, driven primarily by negative market experience. The market experience was due to differences in changes of our mark to market valuation of our assets and the calculated value of our liabilities, as dictated by IFRS 17. We view this experience as transitory and subject to reversal over time, and therefore view core earnings(1) as a better representation of the performance of our business." "We also continue excellent progress on many of our strategic initiatives to optimize our balance sheet, enhance our systems and drive operational synergies from our businesses.  We capitalized on our newly achieved investment grade ratings to issue our first bond in the Canadian market and expand our revolving credit facility, using the proceeds to repay a portion of our term loan taken on in conjunction with the ivari acquisition. These issuances are saving us approximately $7 million in annualized interest costs. We have made several executive appointments, elevating key team members to senior positions to drive organizational change. To oversee these initiatives in North America, I have taken on the role of President and Chief Executive Officer of ivari, in addition to my roles at Sagicor Financial Company Ltd. and at Sagicor USA. With these initiatives we are confident about our ability to expand our return on equity(1) in 2025 and beyond." Overall Sagicor Group – Financial Highlights In Q2 2024, core earnings to shareholders(1) was $25.3 million, an increase Y/Y resulting from positive core results in our Sagicor Canada segment offset by additional interest costs to fund the ivari acquisition. Our Sagicor Life and Sagicor Jamaica segments grew Y/Y due to business growth on short-term business associated with repricing and improved insurance experience on long-term business, while Sagicor Life USA's core earnings to shareholders(1) declined due to negative core insurance experience in Q1 and Q2 2024. Net loss to shareholders for the quarter was $40.2 million driven by $55.1 million of market experience losses(1), and was also affected by one time costs related to a debt financing and retirement of old debt, which are excluded from core earnings(1). Sagicor's capital position remained stable during Q2. Sagicor remains well capitalized with a Group-LICAT ratio(1) of 138% and an MCCSR ratio(1) of 309% for its insurance businesses, and a financial leverage ratio(1) of 26.8%. Consolidated Highlights Profitability (US$ millions) Q2 2024 Q2 2023 Change Y/Y YTD 2024 YTD 2023 Change Y/Y Core earnings to shareholders(1) 25.3 14.0 81 % 38.9 17.9 >100% Net income / (loss) to shareholders (40.2) 48.8 n.m. (14.0) 50.2 n.m. Annualised core return on shareholders' equity(1) (%) 10.9 % 12.5 % (1.6 pts) 8.2 % 8.2 % 0.0 pts New business CSM(1) 40.1 48.6 (17 %) 82.2 75.2 9 % Financial Strength (US$ millions) Q2 2024 Q1 2024 Change Q/Q Shareholders' equity 897.7 964.4 (7 %) Net CSM to shareholders(1) 1,149.1 1,145.4 0 % Shareholders' equity and net CSM to Shareholders(1) 2,046.9 2,109.8 (3 %) Total net CSM(1) 1,291.8 1,285.5 0 % Book value per share(1) (US$ per share) $6.36 $6.84 (7 %) Group-LICAT ratio(1) 138 % 136 % 2 pts MCCSR ratio(1) 309 % 303 % 6 pts Financial leverage ratio(1) 26.8 % 26.7 % 0.1 pts Outlook and Medium-Term Targets Sagicor is updating its guidance on key measures: Core earnings to shareholders(1) for 2024 are expected to be $80 million to $90 million; New business CSM(1) for 2024 is targeted at $160 million to $180 million; 2025 target for core earnings to shareholders(1) growth of over 10% above 2024; Targeted core return on shareholders' equity (ROE)(1) over the medium-term of 13%+; and, Targeted dividend payout ratio(1) based on core earnings to shareholders(1) over the medium-term of 30% to 40%. Business Segment Performance Sagicor has four main reporting operating segments: Sagicor Canada (ivari), Sagicor Life USA, Sagicor Jamaica (of which the Company owns 49.1% and which is consolidated by the Company), and Sagicor Life (which includes the southern Caribbean). Profitability (US$ millions) Q2 2024 Q2 2023 Change Y/Y YTD 2024 YTD 2023 Change Y/Y Core Earnings / (Loss) to Shareholders(1) Sagicor Canada 26.0 - - 43.0 - - Sagicor Life USA 7.6 13.7 (45 %) 15.1 24.2 (38 %) Sagicor Jamaica 9.5 7.2 32 % 17.6 14.3 23 % Sagicor Life 8.2 8.1 1 % 13.5 9.6 41 % Head office(2) (26.0) (15.0) (73 %) (50.3) (30.2) (66 %) Total 25.3 14.0 81 % 38.9 17.9 >100% Net Income / (Loss) to Shareholders Sagicor Canada 20.4 - - 25.6 - - Sagicor Life USA (26.9) 54.6 (>100%) 10.3 59.0 (83 %) Sagicor Jamaica 9.4 10.8 (13 %) 12.6 18.1