Canada's Sagicor Financial Q2 core earnings rise 82% to $46 mln

Overview

• Sagicor Q2 core earnings rise 82% yr/yr to $46 mln, driven by strong segment performance

• Core basic EPS increases 89% to C33.9 cents, reflecting improved profitability

• Reported net loss of $6.4 mln due to market volatility on insurance assets

Outlook

• Sagicor expects 2025 core earnings to shareholders of $120 mln to $130 mln

• Company targets 2025 new business CSM of $155 mln to $175 mln

Result Drivers

• CORE EARNINGS - Record core earnings of $46 mln driven by strong insurance results across all operating segments, per CEO Andre Mousseau

• INVESTMENT EARNINGS - Sagicor Canada saw higher expected investment earnings, contributing to its strong qtr

• U.S. GROWTH - Sagicor Life USA's total assets surpassed $6 bln for the first time, driven by positive insurance experience and higher net investment results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

• Wall Street's median 12-month price target for Sagicor Financial Company Ltd is C$10.50, about 29.4% above its August 12 closing price of C$7.41

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNWcBcw7a