STRENGTH STABILITY TRUST for Over 177 Years, Sagicor Has Been a Symbol of Strength in the Caribbean
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STRENGTH STABILITY TRUST 2017 ANNUAL REPORT Sagicor Financial Corporation Limited STRENGTH STABILITY TRUST For over 177 years, Sagicor has been a symbol of strength in the Caribbean. Operating in over 23 countries, Sagicor has total assets of $6.8 billion with capital of $932 million. A publicly listed company with over 36,000 shareholders and listed on the Barbados Stock Exchange, the Trinidad & Tobago Stock Exchange and the London Stock Exchange — Sagicor is one of the most highly regulated financial institutions in the Caribbean. It is upon this foundation of stability and trust that we are creating the building blocks of a better future for our team, clients, friends and neighbours. OUR VISION To be a great company committed to improving the lives of people in the communities in which we operate. Our Values Sagicor is Timeless, Borderless, and Colourless. These values speak to the all- encompassing nature of our company, guiding our behaviour, procedures, business decisions and relationships. Timeless We are building a company for today, which, while relevant to the current time, will continue to remain relevant for all times. Therefore we will always be innovative and embrace change, never allowing ourselves to become staid or obsolete so that we can retain our edge to compete in the future. Borderless We view ourselves as members of one organisation, and will not be constrained by any self-imposed physical, intellectual or cultural limitations. We will conduct our business in a way that truly reflects this philosophy. Colourless We conduct our business and interpersonal relationships on that consciously high level which creates an environment characterised by a philosophy of equitable treatment and equal opportunity for all. 06 About Sagicor 10 Chairman’s Statement CONTENTS 14 Financial Highlights 18 Technology & Innovation 22 Corporate Social Responsibility 44 Human Capital Report 58 Operating and Financial Review 74 Board of Directors 82 Corporate Governance 96 Executive Management 106 Index to the Financial Statements • Financial Statements & Notes 236 Shareholder Information • Advisors & Bankers • Offices 2017 ANNUAL REPORT 3 ABOUT SAGICOR Our name and reputation draw on strength, stability and financial prudence… that is our heritage. ABOUT SAGICOR SAGICOR – traditional studies and education for those Sagicor has followed a carefully crafted business WISE FINANCIAL THINKING FOR LIFE with special needs. strategy, which has seen the company transform from a local single-line life insurance company to a “Wise Financial Thinking for Life” is far more • Our vision outlines our commitment to financial services group with a solid regional base, than a tagline. It is the heart and soul of Sagicor, initiatives and developments which will before expanding into the international financial and summates why we do, what we do and how enhance the long-term quality of life in the services market. Today, operating in 23 countries, we do it. More importantly, it is the reason our communities in which we operate. From this including the USA and Latin America, Sagicor has clients choose Sagicor and stay with us. Sagicor perspective, we have made health a priority total assets of US $6.8 billion, and $932 million means “wise judgment” and has derived out of an area of our corporate support. As a regional in capital. The Sagicor Group offers a wide range inspirational framework that has supported the leader in the industry, we lead by example, of products and services including life insurance, company for 177 years. both within and outside of the organisation. annuities and group and individual health, and has an insured base in the region of two (2) million. Sagicor’s business is based on long-term • Our footprint spans over 23 countries Sagicor is a widely-held publicly-traded company relationships with its clients who entrust us worldwide. As we grow and develop, with over 36,000 Shareholders, and is listed on with their financial well-being. Our name and our presence is mirrored in each local the stock exchanges of Barbados, Trinidad and reputation draw on the strength, stability and community. Our support for the growth Tobago and London. financial prudence that are our heritage, and this and development of people and social identity defines the flexibility that wise financial infrastructure is unwavering. This is a legacy thinking can bring to our clients throughout their of which we are proud. lives. Through local expertise and in partnership with world-class asset managers and reinsurers, • Nations and companies alike are built on together with sound risk management practices, teamwork and sportsmanship. Sagicor Sagicor is able to provide wise financial advice views these traits as character-building, and that meets the needs of its clients. through our support of sporting events, seeks to nurture their importance across all, Sagicor provides financial support and voluntary races, ages and genders. assistance, primarily in the areas of health, education, youth and community development As we move forward through these challenging and sports, to a number of organisations times in the economic life of our region and and institutions. the rest of the world, Sagicor’s core business strategies will continue to provide a wide range of • We consider the value of education to be financial products and services, while focused on immeasurable. We offer strong support our vision, “To be a great company, committed to across the region to learning institutions improving the lives of people in the communities from primary to tertiary, catering to in which we operate”. 6 SAGICOR FINANCIAL CORPORATION LIMITED OUR HISTORY Establishment of the Barbados Mutual Life The acquisition of 23% interest in Life of SFC Lists on the London Stock Exchange 1840 2000 Assurance Society Barbados • Establishment of Sagicor Europe Ltd • Acquisition of Gerling at Lloyd’s Group 1849 St Vincent branch opened Acquisition of Life of Jamaica in Jamaica and 2007 2001 in the UK • Gerling at Lloyd’s rebranded as Allnation in the US Branches in Trinidad and Tobago & Grenada Sagicor at Lloyd’s • Acquisition of Byrne and 1858 opened Acquisition of majority shares in Life Stacey Underwriting in the UK of Barbados. • Resolution for the 1861 St Kitts branch opened Rebranding of Life of Jamaica to Sagicor Life demutualisation of Barbados Mutual Life Jamaica Limited • SFC Lists on the Jamaica Assurance Society was passed. Conversion 1863 Antigua & Montserrat branches opened • Stock Exchange • Rebranding of Byrne and from Barbados Mutual Life Assurance Society 2008 Stacey Underwriting to Sagicor Underwriting 1866 Demerara (Guyana) branch opened 2002 to Sagicor Life Inc. The establishment of • • Acquisition of controlling interest in the holding Company, Sagicor Financial 1868 Dominica branch opened Barbados Farms Limited Corporation (SFC). 45,000 policyholders 1896 Jamaica branch opened awarded shares as a result of demutualisation. Sagicor Life Jamaica agrees to participate in • The Initial Public Offering of Sagicor Shares, the Government of Jamaica National Debt Mutual Finance Company Ltd established increasing shareholders to 49,000 Exchange Programme • Sagicor Life acquires Acquisition of Travellers Portfolio and 2012 • the traditional life insurance policies of British 1987 the rebranding of Aruba, Bahamas, Belize, SFC Lists on the Barbados Stock Exchange 2003 American Insurance Company Limited in the Cayman Islands, Curacao, St Maarten and Sale of the Mutual Bank • Eastern Caribbean Haiti to Capital Life SFC Lists on Trinidad and Tobago Stock 2004 SFC sells Sagicor Europe and its subsidiaries Establishment of the Mutual Bank of the Exchange to AmTrust Financial Services • Sagicor 1993 Caribbean, the first indigenous bank to 2013 Acquisition of majority interest in Pan Group Jamaica enters into a Sale and Barbados Caribbean Financial Services. • Acquisition of Purchase Agreement to acquire RBC Jamaica Mutual Financial Services and Caribbean Laurel Life and its wholly-owned subsidiary, 1994 Central Bank of Jamaica approves Sagicor Caricard Services established American Founders Life Insurance Company • 2005 Group Jamaica’s acquisition of RBC Jamaica in the US • Life of Jamaica acquires Cayman 2014 Capital International Management Services • Rebranding of RBC Jamaica to Sagicor 1996 General Insurance • Acquisition of 20% established Bank of FamGuard • Acquisition of First Life Establishment of Mutual Asset Management Insurance portfolio 1997 • Sagicor Celebrates its 175th Anniversary Inc and Mutual Funds Inc Successful US$150 million Bond Offering on 2015 • Successful US $320 million Bond Offering on the international market Acquisition of the Panama branch of Atlantic the US market • Sagicor Life Inc assigned a 1998 Standard and Poor’s (S&P) financial strength Southern Insurance Company 2006 SFC redomiciles in Bermuda and the rating of “BBB+” American Founders Life • 2016 company name is changed to Sagicor Acquisition of Island Life in Jamaica and Insurance Company rebrands as Sagicor Life Financial Corporation Limited Nationwide Insurance Company in Trinidad Insurance Company Limited and Tobago. • The acquisition of shares in 1999 Life of Jamaica • First AM Best Rating ‘A’ Excellent received by BMLAS and maintained by Sagicor Life Inc 2017 ANNUAL REPORT 7 CHAIRMAN’S STATEMENT Our guiding principle has always been to act wisely. Wise financial thinking for life is what we do. CHAIRMAN’S STATEMENT US $932.3 million, compared to US $795.4 million contracts amounting to