SAGICOR FINANCIAL CORPORATION has agreed to accept US$85 million (BDS$170 million) from AmTrust Financial Services for the sale of Sagicor Europe Limited which includes the loss-making Sagicor at Lloyds Limited.
This was revealed by Stephen McNamara, chairman of Sagicor Financial Corporation, in his report to shareholders in the insurance giant’s six months financial results for the period ended June 30, 2013.
While describing the purchase price as a “premium”, he disclosed that Sagicor Europe Limited’s operation recorded a net loss of US$41.7 million for the six-month period.
“This comprises an operating loss of US$23.6 million, foreign exchange and finance costs of US$8.0 million and an impairment estimate of all future losses of US$10.1 million,” the Sagicor chairman disclosed.
McNamara added: “The operating loss is as a result of a number of factors. The uncertainty in the Lloyd’s market on the future of Sagicor’s syndicate contributed to our inability to reach premium revenue targets.
“In addition, within certain lines of business, there was a worsening of the claims experience, resulting in the group having to record some large losses and to strengthen claim reserves for business already written.”
Meanwhile, the Sagicor chairman said the group’s businesses in the Caribbean and the United States “continued to perform well, with revenue from continuing operations amounting to US$498.7 million, an improvement of US$21.5 million over the corresponding period in 2012”.
The Sagicor chairman pointed out that during the first six months of 2013, the global economy continued to demonstrate modest improvements.
“In the Caribbean, with the exception of Trinidad and Tobago, the economies continue to be under pressure, with no noticeable improvement in economic activity during the period,” he noted.
In this connection, McNamara said that in this environment, the Sagicor Group maintained “good performance on its continued operations”. (GE)
