RATING DRIVERS
Supporting Factors
- Leading market positions and strong brand equity support a consistent and healthy financial performance
- Rebound in financial performance in 2021, following negative impacts of Covid-19 pandemic in 2020
- Continued comfortable capitalisation levels
- Strong and comprehensive enterprise risk management
Constraining Factors
- Uncertain interest rate environment has the potential to challenge the Group’s asset liability management
- Significant sovereign risk exposure to the highly indebted Jamaican economy despite the improved economic conditions
Rating Sensitivity Factors
Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:
- An increase in our internal ratings assigned to the sovereign, driven by continued favourable improvements in the macroeconomic environment of Jamaica and a lowering of the debt/GDP ratio
Factors that could, individually or collectively, lead to a lowering of the ratings/or outlook include:
- Substantial deterioration in the financial performance and profitability of the Group, with a greater than 20% increase in net insurance benefits and claims and an accompanying 15% rise in operating expenses.
COMPANY BACKGROUND
Sagicor Group Jamaica Limited (“SGJ” or the “Group”) is a financial services conglomerate that was incorporated in 2013 and is domiciled in Jamaica. The Group, which is listed on the Jamaica Stock Exchange (JSE), is 32.45% owned by LOJ Holdings Limited and 16.66% owned by Sagicor Life Incorporated, both wholly owned subsidiaries of Sagicor Financial Company Limited (SFC)[1]. Its other major shareholder is PanJam Investment Limited (30.21%). The Group is comprised of thirteen (13) subsidiaries with operations in three main countries[2], these being Jamaica, The Cayman Islands and the United States of America. Its three (3) largest operating subsidiaries are Sagicor Life Jamaica Limited (SLJ), Sagicor Bank Jamaica Limited (SBJ) and Sagicor Investments Jamaica Limited (SIJ). The Group offers an extensive range of financial products and services in the areas of insurance, banking, asset management, real estate and retirement planning. As at September 30, 2021 the Group’s total assets stood at J $506.5 billion and total revenue was J $73.1 billion[3]. In 2020, SGJ declared profit attributable to shareholders of J $13.8 billion, the second highest of conglomerates listed on the Jamaica Stock Exchange.
Analytical Contacts :
Jeffrey James
E-mail: [email protected]
Anelia Oudit
Mobile: 1-868-487-8364
E-mail: [email protected]
Website: www.caricris.com
E-mail: [email protected]
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