Sagicor Group Jamaica Limited (SJ) has posted a strong performance in the second quarter of 2025, with consolidated net profit climbing 60 per cent from $3 billion to $4.79 billion, driven by a rebound in global markets and stronger insurance revenues.
Market Recovery Boosts Investment Income
During April to June, Sagicor injected $13.85 billion into its financial investments, a move that paid off as international markets rebounded. The group secured $585 million in realised gains and $1.66 billion in unrealised gains, reversing last year’s loss position. This helped net investment income climb 47 per cent to $8.92 billion, compared to a weaker Q2 2024 where losses overshadowed returns.
Insurance Segment Strengthens
Sagicor’s insurance arm delivered a 15 per cent revenue increase to $15.13 billion, benefiting from higher sales in group health and life products. A US$10.7-million contractual service margin release also lifted results. The insurance service outcome rose 96 per cent to $3.53 billion, aided by favourable claims and reinsurance dynamics.
Sagicor Financial Company Limited (SFC), the parent company, noted that both short-term and long-term businesses contributed to growth. Short-term products, repriced to improve margins, saw a 21 per cent jump in health insurance net premiums, while long-term premiums rose 5 per cent year-over-year.
Wider Revenue Growth
Fee and other revenues increased 13 per cent to $4.99 billion, while the group’s regional joint venture in Panama and Costa Rica added $255 million in profit share. Despite operating expenses edging up 4 per cent to $8.17 billion, pre-tax profit rose 65 per cent to $6.23 billion, pushing net profit attributable to shareholders up to $4.76 billion or $1.22 per share.
Half-Year Performance Nearly Matches 2024 Total
Across the first six months, net profit jumped 120 per cent to $8.83 billion, nearly equalling the company’s full-year 2024 total. Insurance revenue for the half-year rose 15 per cent to $29.43 billion, while investment income surged 75 per cent to $19.15 billion. Capital gains also strengthened, with realised gains up 485 per cent to $1.50 billion and unrealised gains of $4.36 billion contrasting last year’s loss.
Balance Sheet Expansion
Sagicor’s asset base grew 9 per cent to $652.7 billion, supported by a 10 per cent rise in financial investments and a 9 per cent increase in loans and leases to $150.14 billion. Cash resources stood at $36.74 billion. Liabilities climbed 10 per cent to $540.26 billion, while consolidated equity rose 8 per cent to $112.44 billion.
Stock and Insider Moves
SJ’s stock closed at $39.94, reflecting a marginal 1 per cent dip for the year-to-date and giving the company a market cap of $155.98 billion. The stock traded at a price-to-earnings multiple of 11.13 times, based on trailing 12-month EPS of $3.59.
Insiders, including President and CEO Christopher Zacca, continued to increase their holdings. Zacca acquired 388,616 shares, while CFO Andre Ho Lung purchased 113,617 shares. Several other senior executives also expanded their positions.
Outlook
Despite global uncertainties, Sagicor remains cautiously optimistic. Zacca underscored the group’s focus on monitoring risks while positioning for continued expansion.
