RATING DRIVERS
Supporting Factors
- Leading market positions and strong brand equity supports a consistent and healthy financial performance
- Good financial performance despite a challenging operating environment
- Comfortable capitalization levels
- Strong and comprehensive enterprise risk management
Constraining Factors
- Protracted low interest rate environment has the potential to challenge the Group’s asset liability management
- Significant sovereign risk exposure combined with declining economic conditions in Jamaica
Rating Sensitivity Factors
Factors that could lead to an improvement of the rating 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 lead to a lowering of the rating and/ or Outlook include:
- Substantial deterioration in the financial performance and profitability of the Group, with a greater than 10% fall in premium income and an accompanying 10% 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 company, 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 (30.2%). The Group is comprised of thirteen (13) subsidiaries with operations in three main countries, 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, 2020 the Group’s total assets stood at J $474.5 billion and total revenue was J $60.2 billion[2]. In 2019, SGJ declared profit attributable to shareholders of J $15.7 billion, the second highest of conglomerates listed on the Jamaica Stock Exchange.
[1] Following the completion of the business combination and strategic acquisition of Sagicor Financial Corporation by Alignvest Acquisition II Corporation, a Toronto-based Special Purpose Acquisition Corporation (SPAC) in December 2019, a new entity, Sagicor Financial Company Limited was incorporated and listed on the Toronto Stock Exchange.
[2] Unaudited Interim Accounts for the 9 months ended September 2020.
Analytical Contacts:
André Joseph
Tel: 1-868-627-8879 Ext. 224
Mobile: 1-868-788-4693
E-mail: [email protected]
Anelia Oudit
Tel: 1-868-627-8879 Ext. 226
Mobile: 1-868-487-8364
E-mail: [email protected]
Website: www.caricris.com
E-mail: [email protected]
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