Slides
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Investor Presentation Sagicor Financial (TSX:SFC) Q4 and Full Year 2024
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2 ▪ Sagicor Financial Company Ltd. (“Sagicor Financial” or “Sagicor”) is a leading provider of insurance products and related financial services ▫ Core products and services include life and health insurance, annuities, pension investment and administration, property and casualty insurance, and a suite of ancillary non-insurance financial products ▫ Focused on growing operating segments that have strong competitive advantages in niche markets, historically producing high ROEs1 ▪ Over 180 years of building a diversified regional insurance leader operating in 19 countries Sagicor at a Glance Sagicor Canada ▫ Operating as ivari → formerly Transamerica Life Canada ▫ Leading middle-market Canadian life insurer ▫ In the market for over 90 years offering protection and retirement products and services Sagicor Life USA ▫ Operating over 70 years across 45 states and D.C. ▫ Formerly American Founders (founded in 1954) and Laurel Life (founded in 1984) ▫ One of the last independent U.S. annuities platforms Sagicor Life ▫ Leading life insurer in the Southern Caribbean ▫ Over 180 years offering life insurance products in the region Sagicor Jamaica ▫ Sagicor owns 49% of leading Jamaican life insurer along with a bank and a capital markets platform, as well as a property and casualty insurer ▫ Operating since 1970; Sagicor ownership since 2001 Jamaica Dutch Caribbean Trinidad & Tobago Eastern Caribbean Barbados Cayman Islands USAUSA Canada Long history of being a leading provider of insurance solutions to the middle-market across North America 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A.
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Individual Insurance Group Insurance Banking and Other Financial Services P&C Insurance Other 3 ▪ Sagicor’s balance sheet is approximately 75% in Canada and the United States, providing a stable base for participation in those markets ▪ Over 85% of revenues1 primarily comprised of life insurance, health insurance, and annuities sold to individuals and groups ▪ Leading market share within our operating markets ▫ Sagicor ranks 1st or 2nd in universal life insurance in Canada, 1st in life insurance, health insurance, and pensions in Jamaica, Barbados, and the Eastern Caribbean, and 2nd in Trinidad and Tobago2 Sagicor Business Overview 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-4Refer to Slide 25. Total Assets by Segment3 Core Earnings1 to Shareholders by Segment3 Revenues1,3 by Line of Business Resilient businesses with leading market positions across geographies Sagicor Canada Sagicor Life USA Sagicor Jamaica Sagicor Life Sagicor Canada Sagicor Life USA Sagicor Jamaica Sagicor Life $22.8 billion Q4 2024 $185 million 2024 $3.1 billion 2024
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4 Investment Highlights
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5 Reasons to Buy Attractive valuation with significant upside Strong track record of sustainable growth, profitability, and returning capital to shareholders Significant growth opportunities with focus on expanding ROE1 1 2 3 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A.
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6 Attractive Valuation With Significant Upside 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-3Refer to Slide 25. Attractive entry point for equity investors 1 C$10.19 C$10.00 to C$12.00 SFC Current3 Share Price C$7.24 +46% upside +43% to 71% upside SFC Book Value per Share1 SFC Implied Value per Share at Comparable Company Multiples2 ▪ Shares are currently3 trading at: ▫ 29% discount to book value per share1 ▫ 67% discount to deployable capital to shareholders1 ▪ Core earnings yield1 is 15.3%: ▫ 5.4% USD cash dividend yield1 ▫ Excess retained earnings available for reinvestment in U.S. growth and share buybacks ▪ Shareholders today have 200% more book value1 in future profits already on the books ▪ C$21.61 per share of deployable capital1 (book value1 and net contractual service margin1) ▫ Contractual service margin: contracted profit on balance sheet and amortizes into income over time
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7 ▪ Growth through prudent and active management of the operating subsidiaries ▪ Focused on growing high unit-economics businesses and products Sagicor’s Growth Strategy Growth levers provide a pathway to ROE1 expansion and compounding book value growth 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. Continue to organically grow the U.S. annuities platform Refinance debt at investment grade levels Improve ROE1 in legacy Caribbean businesses through the use of technology and digital transformation Synergies through integration of Canada and the U.S. Multiple Avenues for Growth 2
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8 ▪ Easy to execute organic growth in the U.S. with attractive unit economics ▪ 2025 new business CSM1 target of $180 million to $200 million2 ▪ $1.1 billion of future profits (net CSM to shareholders1) already on the books Sagicor’s Growth Trajectory 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-3Refer to slide 25. At TSX Listing3 Q4 2024 Total Assets $8.7 billion Total Assets $22.8 billion 2 Future State Canada USA Caribbean and Other Assets by Geography (US$ billions) Core Basic Earnings1 per Share Guidance2Earnings Growth Catalysts Future growth fueled by expansion of the U.S. business 10%+ Growth 2025E 2026E 74.0₵ to 80.0₵
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Canada USA Other IG Jamaica Barbados Other In five years since listing on the Toronto Stock Exchange in Q4 2019, this team has: 9 1,3-6Refer to slide 25. 2Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. ✓Grown assets by over 160% ✓Grown comparable earnings by over 170%1 ✓Grown deployable capital2 / comparable book value by over 110% ✓Restored investment grade status Strong Track Record of Sustainable Growth and Profitability Profitability (US$ millions) Total Assets (US$ billions) Shareholders’ Equity plus Net CSM to Shareholders2 USA Other IG Jamaica Barbados Other Assets by Geography (US$ billions) At TSX Listing6 Q4 2024 Total Assets $8.7 billion Total Assets $22.8 billion 3 Core Earnings to Shareholders2 $91 $87 New Business CSM to Shareholders2 $145 $236 At TSX Listing 2024 4 Net Income to Shareholders IFRS 17 IFRS 4 $8.7 $22.8 At TSX Listing Q4 20243 Shareholders' Equity C$10.00 per share Shareholders' Equity C$10.19 per share Net CSM to Shareholders2 C$11.42 per share C$21.61 At TSX Listing Q4 20245 IFRS 4 IFRS 17
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$33.3 $32.5 $32.2 $32.0 $33.7 $13.0 $19.9 $6.0 $9.2 $13.4 $46.3 $52.4 $38.1 $41.2 $47.1 2020 2021 2022 2023 2024 Annual Dividends Declared Annual Share Repurchases Strong Track Record of Returning Capital to Shareholders $167 million1 Dividends Declared Since TSX Listing $62 million2 Share Repurchases Since TSX Listing Capital Returned to Shareholders (US$ millions) 10 $229 million of Capital Returned to Shareholders Through Dividends and Share Repurchases Since TSX Listing 5.4% dividend yield3 at current share price US$0.0675 per share quarterly dividend (US$0.27 per share annualized) Note: Refer to Slide 25. 1-2Refer to Slide 25. 3Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 3 Dividend increased by 12.5% in March 2025 to US$0.0675 37% Core Earnings to Shareholders Dividend Payout Ratio3 (2024)
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C$7.24 Received Regulatory Approval for ivari ivari Acquisition Close Credit Ratings Upgrades Published Business Acquisition Report with Pro Forma Financials Q4 Earnings Release and Dividend Increase C$250 million Bond Issuance Refinancing C$200 million Term Loan Credit Facility Refinancing C$4.00 C$5.00 C$6.00 C$7.00 C$8.00 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Brokerage Analyst Target Price Rating Trevor Reynolds C$10.25 Buy Meny Grauman C$10.00 Sector Outperform Gabriel Dechaine C$9.50 Outperform Darko Mihelic C$8.50 Outperform Consensus Target SFC Share Price C$9.56 Canadian Lifecos P/B1,2 P/E 2025E1,3 P/E 2026E1,3 Manulife Financial 1.6x 10.1x 9.2x Sun Life Financial 1.9x 10.8x 9.9x Great-West Lifeco 1.9x 10.5x 9.8x iA Financial 1.7x 10.3x 9.4x Peer Average 1.8x 10.4x 9.6x Sagicor Financial (SFC) 0.7x 7.1x 6.2x Peer Premium to SFC 153% 47% 54% 11 Sagicor: An Attractive Investment Opportunity Performance Since ivari Acquisition Close Note: as at March 12, 2025, unless otherwise indicated 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-8Refer to Slide 25. Equity Research Coverage8 Share Price Return1: +51% Total Shareholder Return1: +59% SFC Statistics Book Value Per Share1,2 US$7.08 / C$10.19 Market Capitalisation1,4 US$682 million / C$981million JMMB5 Other Anchor Investors and Insiders6 Float 135.5 million Shares Q4 20247 Comparable Company Metrics Motivated and Engaged Anchor Investors
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Key Messages ➢Board and management focused on enhancing shareholder value ➢Attractive valuation with significant upside ➢Significant growth opportunities with focus on expanding ROE1 ➢Track record of value creation and returning capital1 to shareholders 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 12
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13 Business Segment Overviews
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We earn fees and spreads on our products Backed by conservative actuarial reserving and a low-risk investment portfolio 14 What We Do Federal Bonds Provincial / State Bonds Municipal Bonds Corporate Bonds Other Fixed- Income Assets Customers Investment Portfolio Future Benefits and Claims Premiums and Deposits Asset Investments Returns Non-Fixed Income Assets Sagicor operates a business focused on earning income by assisting customers in managing future financial risks
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$686 $87 $95 $46 $694 $764 $76 $133 2021 2022 2023 2024 New Business CSM to Shareholders1 ▪ Sagicor Canada (ivari) is a leading middle-market life insurance platform founded as Transamerica Life Canada in 1927 ▫ Acquired by Sagicor in 2023 and furthers the company’s strategy of growing in individual life insurance ▪ Primary offering includes universal life and traditional term life insurance with few guarantees ▫ Distributed through a national network of thousands of independent professional advisors with whom ivari has long-standing and productive relationships ▪ Significant historical profits with strong capital generation ▫ Solid core underlying cash generation ▪ Largest Sagicor segment by assets and net income ▫ Growth opportunity through expansion of products and distribution ▫ ROE1 expansion through synergies with rest of group ▫ Efficient operating platform designed to deliver excellent service and scale benefits $11.0 $10.0 $11.1 $10.6 2021 2022 2023 2024 Sagicor Canada 15 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-6Refer to Slide 25. Total Assets2 (US$ billions) Profitability3 (US$ millions) IFRS 4 IFRS 17 IFRS 4 IFRS 17 Core Earnings1 to Shareholders Adjusted Net Income to Shareholders1,4
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$48 $40 $40 $37 $58 $140 $88 $77 2021 2022 2023 2024 ▪ Acquired by Sagicor through two acquisitions in 2005 (American Founders and Laurel Life) ▫ Has since narrowed its focus to grow in the individual fixed annuities market, having doubled the size of its balance sheet in the last five years ▪ Primarily offers fixed annuities ▫ Offered in 45 states and the District of Columbia and sold through approximately 10,000 marketing organizations, financial institutions, and independent agents ▪ Excellent growth in attractive market ▫ Fast-growing provider of simple and “easy-to-buy” individual fixed annuity and life insurance products ▫ Focused on growing pre- and post-retiree clients supported by strong secular trend of an aging population with increased retirement funding needs (+26% forecasted growth from 2022 to 2035 in 65 and older population)1 ▫ Largest insurance market globally: $428 billion individual annuity market2 ▪ Outstanding unit economics ▫ High-teen internal rate of return on marginal capital invested bolstered by solid investment performance ▪ Strong financial profile and distribution ▫ Strong financial profile (A- by AM Best) fostering strong distribution relationships through independent channel Sagicor Life USA 16 1-2Refer to Slide 25. 3Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. $4.3 $4.8 $5.3 $5.9 2021 2022 2023 2024 Total Assets (US$ billions) Profitability (US$ millions) IFRS 4 IFRS 17 IFRS 4 IFRS 17 Core Earnings3 to Shareholders Net Income to Shareholders New Business CSM to Shareholders3
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$40 $31 $18 $20 $60 $51 $58 $51 2021 2022 2023 2024 $3.4 $3.5 $3.7 $3.9 2021 2022 2023 2024 ▪ Largest publicly traded financial company on the Jamaica Stock Exchange (JSE:SJ) ▫ Leading life insurer and investments platform, commercial bank, and property and casualty insurer in the Jamaican market ▪ Primarily offers life and health insurance and annuities but also includes banking services (commercial banking and investment banking) and asset management ▪ Sagicor acquired its stake in 2001 ▫ Today Sagicor’s 49% stake is worth approximately US$500 million1 ▪ Outstanding profitability ▫ 59% profitability growth2 with 4.3% compound annual growth rate since 2013 and track record of outstanding ROE3 (historical average ROE3 of 16.0% from 2019 to 2023)4 ▪ Exceptional brand with strong loyalty complemented by one of the largest distribution networks in Jamaica and the Cayman Islands ▪ Operates in a highly developed and managed regulatory regime with the Financial Services Commission Sagicor Jamaica 17 1-2,4Refer to Slide 25. 3Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. IFRS 4 IFRS 17 Total Assets (US$ billions) Profitability (US$ millions) IFRS 4 IFRS 17 Core Earnings3 to Shareholders Net Income to Shareholders New Business CSM to Shareholders3
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$15 $26 $47 $43$44 $28 $61 $69 2021 2022 2023 2024 $2.4 $2.5 $2.7 $2.6 2021 2022 2023 2024 IFRS 4 ▪ Sagicor Life was established in 1840 in Barbados as Barbados Mutual Life Assurance Society and has grown in many of its markets across the English-speaking Caribbean1 ▪ Provides life and health insurance, annuities, pension services, and asset management ▪ Strong brand and market share in life and health insurance and pensions ▫ Driven by long history of operations and best-in-class customer service ▪ Exceptional distribution ▫ Largest captive distribution force with well-recognized brand and strong loyalty in the region provides for ability to maintain competitive advantages ▪ Upside through technology and margin expansion Sagicor Life 18 1Refer to Slide 25. 2Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. Profitability US$ millions Total Assets US$ billions IFRS 17 IFRS 4 IFRS 17 Core Earnings2 to Shareholders Net Income to Shareholders New Business CSM to Shareholders2
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$49 $91 $113 $145 $734 $875 ($4)6 $133 $116 $1637 $236 2018 2019 2020 2021 2022 2023 2024 $7.3 $8.7 $9.3 $10.4 $10.8 $22.4 $22.8 2018 2019 2020 2021 2022 2023 2024 19 Sustained Balance Sheet Growth Driving Strong Profitability Revenues1,2 (US$ millions) Profitability (US$ millions) Total Assets (US$ billions) Policy Liabilities1,3 (US$ billions) $1,386 $1,867 $1,878 $2,359 $2,540 $2,534 $3,086 2018 2019 2020 2021 2022 2023 2024 $3.7 $4.3 $4.9 $5.6 $6.0 $16.7 $17.0 2018 2019 2020 2021 2022 2023 2024 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. 2-7Refer to Slide 25. IFRS 4 IFRS 17 IFRS 4 IFRS 17 IFRS 4 IFRS 17 IFRS 4 IFRS 17 Core Earnings1 to Shareholders Net Income to Shareholders New Business CSM to Shareholders1 8 8
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Appendix 20
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21 Experienced Management Team Andre Mousseau President and Chief Executive Officer Kathryn Jenkins Chief Financial Officer Anthony Chandler Chief Financial Controller Althea Hazzard EVP, General Counsel and Corporate Secretary Nari Persad Chief Actuary Lynda Gauthier Chief Risk Officer and Chief Sustainability Officer George Sipsis EVP, Corporate Development and Capital Markets Neil Freyke EVP, Technology and Chief Digital Officer ▪ Appointed President and Chief Executive Officer in April 2023 ▪ Previously held the positions of Group Chief Operating Officer from 2021 to 2023, and Group Chief Financial Officer from 2019 to 2023 ▪ Over 20 years of experience in the financial services industry ▪ Appointed Chief Financial Officer in March 2023 ▪ More than 20 years in the Insurance and Financial Services industries ▪ Holds Chartered Professional Accountant CPA, CA, and Certified Public Accountant, CPA (Illinois) designations ▪ Appointed Chief Risk Officer and Chief Sustainability Officer in 2022 ▪ Over 20 years of global experience in the financial services industry with particular focus on risk management, capital markets, investor relations and sustainability ▪ Holds an MBA from the University of Chicago Graduate School of Business and Bachelor of Commerce from Concordia University ▪ Appointed Chief Actuary in 2017 and Senior Vice President and Chief Actuary in 2021 ▪ More than 30 years of experience in the insurance industry, including positions at Crown Life Insurance Company, Canada Life Assurance Company, Toronto Dominion Life Insurance Company, Swiss Re Life and Health, and Dion Durrell + Associates ▪ Fellow of the Canadian Institute of Actuaries, Fellow of the Society of Actuaries, Member of the Caribbean Actuarial Association ▪ Appointed to current role in 2014, having previously served in the positions of Vice President, Legal and Compliance of Sagicor Life Inc and Corporate Secretary of Life of Barbados Limited ▪ An Attorney-at-Law, Chartered Secretary and Compliance Professional, Mrs. Hazzard joined Sagicor in 1997 ▪ Appointed Chief Financial Controller in 2013 ▪ Prior to this, he served as Executive Vice President and Chief Financial Officer of Sagicor Life Inc from 2011 ▪ Member of the Chartered Professional Accountants of B.C., Canada and holds an MBA from the University of Manchester ▪ Appointed to current role in 2023; joined Sagicor in 2021 ▪ Prior to joining Sagicor, he held progressively senior roles in the real estate and financial services groups of Scotiabank’s investment banking division in Toronto ▪ Joined Sagicor in 2024 ▪ Most recently Senior Vice President and Chief Information Officer, Group Functions, Global Technology at Manulife ▪ More than 20 years of global experience in data, analytics and technology management within the financial services industry Paula Walcott Chief People Officer ▪ Appointed Chief People Officer in October 2023, having held progressively senior roles within Sagicor since joining in 2016 ▪ More than 20 years experience in human resources management ▪ Prosci Certified Change Management Practitioner, holds a Master of Science Degree in Human Resources from the University of Surrey and a First-Class Honours Bachelor of Science degree in Social Sciences from the University of the West Indies
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22 Experienced and Aligned Board of Directors Chairman President & CEO Directors Mahmood Khimji Andre Mousseau The Most Honourable Dodridge D. Miller Sir Hilary Beckles Dr. Archibald Campbell Peter E. Clarke Keith Duncan Monish Dutt Stephen Facey Dennis L. Harris Cathleen McLaughlin Gilbert Palter Alan Ryder Reza Satchu Aviva Schneider Board of Directors Aligned management team and board with significant equity ownership Motivated and Engaged Anchor Investors 1-3Refer to Slide 25. ▪ Insiders and anchor investors on board of directors owning over 40%, supported by: ✓ Expert finance and risk professionals with a strong and proven track record across large, global, and complex institutions ✓ Experienced and long-tenured local management and operations teams ✓ Shareholder value-focused executives with private equity experience surfacing value for shareholders through transactions JMMB1 Other Anchor Investors and Insiders2 Float 135.5 million Shares Q4 20243 Share count reduced from 147.8 million at TSX listing
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▪ Conservative investment portfolio comprised mostly of corporate and government bonds ▪ Portfolio driven primarily by highly liquid investment grade debt ▪ Limited exposure to real estate, private debt, private equity, and public equities Resilient Investment Portfolio Driven by Sound Investment Policies 231-3Refer to Slide 25. Low risk investment portfolio backing conservative reserves Financial Investments by Asset Class Debt Securities – 72% Mortgage Loans – 5% Finance Loans – 4% Preferred Shares – 2% Deposits – 2% Common Equities – 2% Other – 1% Pass-Through Equities Backing Policyholder Funds1 – 12% AAA/AA – 28% A – 14% BBB – 41% BB – 12%2 B – 5%3 Debt Securities by Credit Rating $17.9 billion Q4 2024 $13.0 billion Q4 2024 Government debt required by local regulators
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27.3% Financial leverage ratio1 $175 million Liquidity from revolving credit facility 139% 289% Group-LICAT1 ratio MCCSR1 ratio Strong capital base with significant excess capital Significant capital deployment potential 24 Well Capitalized with Available Excess Capital and Liquidity Note: As at Q4 2024. 1Represents a non-IFRS or other financial measure. Refer to the Non-IFRS and Other Financial Measures section in the appendix to these slides and in our 2024 Annual MD&A. Solid capital position to grow shareholder returns
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Footnotes From Slide 3 Sources: Insurance Association of Jamaica, Barbados Financials Services Commission, Financial Services Authority (St. Vincent & the Grenadines), Financial Services Regulatory Authority (St. Lucia), Financial Services Unit (Dominica), Financial Services Regulatory Commission (Antigua & Barbuda and St. Kitts & Nevis), Grenada Authority for the Regulation of Financial Institutions, Association of Trinidad & Tobago Insurance Companies (ATTIC), Life Insurance Marketing and Research Association (LIMRA) 2Individual life insurance as of December 2022 based on annualized premium income in Jamaica; Life insurance, health insurance, and pensions to individuals and groups in Barbados as of December 2022; Antigua and Barbuda (December 2017); Belize (December 2022) Dominica (December 2021), Grenada (December 2018), St. Kitts Nevis (December 2022), St. Lucia (December 2022), St. Vincent and the Grenadines (December 2022); Universal life annualized premiums including excess in Canada in Q4 2023 3Excludes head office, other, and adjustments; From Slide 6 2Based on blended average P/E and P/B comparable companies’ multiples 3TSX:SFC close price as at March 12, 2025 From Slide 8 Note: “At TSX Listing” metrics are presented on an IFRS 4 basis; 2024 metrics are on an IFRS 17 basis; IFRS 17 was implemented retrospectively on January 1, 2023; 2SFC financial guidance is based on certain assumptions, including business, economic, and market conditions, as of the date hereof. Please refer to Sagicor’s 2024 Annual MD&A for a discussion of material risks and assumptions 3Total assets as of December 31, 2019 From Slide 9 Note: “At TSX Listing” metrics are presented on an IFRS 4 basis; 2024 metrics are on an IFRS 17 basis; IFRS 17 was implemented retrospectively on January 1, 2023 1Based on 2024 core earnings to shareholders and new business CSM to shareholders 3Total assets as of December 31, 2019 4Net income to shareholders excluding $43 million of scheme of arrangement transaction costs for the period ended December 31, 2019 2$10.00 per share as at the date of SFC’s initial public offering (December 6, 2019) 6Assets by geography as of December 31, 2019 From Slide 10 Note: All figures are in US$ unless otherwise stated 1Includes $3.7 million of dividends declared in 2019 2Share repurchases as at March 12, 2025 From Slide 11 2Book value per share as at December 31, 2024 3Earnings per share analyst consensus estimates from Capital IQ as at March 12, 2025 4US$ Market Capitalisation as based on USD:CAD exchange rate of 1.4391 as at March 12, 2025 5“JMMB” = JMMB Group Limited 6Investors with representation on the Sagicor board of directors and insiders 7Issued and outstanding shares, net of treasury shares 8Sagicor does not endorse the price targets and ratings presented From Slide 15 2USD:CAD exchange rate of 1.2678 as of December 31, 2021; USD:CAD exchange rate of 1.3544 as of December 31, 2022 3USD:CAD exchange rate of 1.2535 for the year ended December 31, 2021; USD:CAD exchange rate of 1.3013 for the year ended December 31, 2022; USD:CAD exchange rate of 1.3497 for the year ended December 31, 2023 4Sagicor Canada adjusted net income for 2021 and 2022 are the after-tax sum of three measures from the IFRS 4 Sources of Earnings: expected profit on in force operations, impact of new business, and earnings on surplus. Excludes experience gains and losses, changes in assumptions and other variances, and management actions 5Includes results from Sagicor Canada (ivari) effective October 3, 2023 6Represents Sagicor Canada (ivari) 2023 core earnings to shareholders inclusive of periods before the acquisition on October 3, 2023 From Slide 16 1Population estimate and data from the U.S. Census Bureau 2Wink, Inc. 4th Quarter, 2024 Annuity Sales and Market Report 2024 From Slide 17 1Approximate value based on equity market price on the Jamaica Stock Exchange translated at USD:JMD exchange rate of 156.7734 as of March 12, 2025 2Based on 2024 core earnings to shareholders and new business CSM to shareholders compared to IFRS 4 net income to shareholders in 2013 4Based on five-year historical average ROE from 2019 to 2023; 2023 ROE figure on IFRS 17 basis; IFRS 17 was implemented retrospectively on January 1, 2023 From Slide 18 1Outside of Jamaica and the Cayman Islands From Slide 19 2Figures prior to 2023 are total revenue 3Total policy liabilities prior to 2023; IFRS 17 policy liabilities are the sum of four IFRS measures: investment contract liabilities, reinsurance contract liabilities, insurance contract liabilities, and insurance contract liabilities on account of segregated fund policyholders 4Net income to shareholders excluding $36 million one-time impact of Government of Barbados debt restructuring for the period ended December 31, 2018 5Net income to shareholders excluding $43 million of scheme of arrangement transaction costs for the period ended December 31, 2019 6Net income to shareholders was adversely affected by the impact of the COVID-19 pandemic on the business. The main contributing factors were slower than expected new business generation in the first half of 2020, higher expected credit losses, asset value mark-to-market declines, strengthening of actuarial liabilities at Sagicor Life USA 7Includes results from Sagicor Canada (ivari) effective October 3, 2023 From Slide 22 1“JMMB” = JMMB Group Limited 2Investors with representation on the Sagicor board of directors and insiders 3Issued and outstanding shares, net of treasury shares From Slide 23 1Risk borne by policyholders; consists of predominantly mutual funds and exchange traded funds 210% of the 12% of BB rated bonds are Government of Jamaica bonds 3Predominantly Government of Barbados bonds 25
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Caution Regarding Non-IFRS and Other Financial Measures This investor presentation for Sagicor Financial Company Ltd. (“Sagicor Financial”, “Sagicor” or the “Company”) should be read in conjunction with the Company’s Management’s Discussion & Analysis (“MD&A”) and the Consolidated Financial Statements for the year ended December 31, 2024. These documents are available on Sagicor’s website, at www.sagicor.com, under the heading “Financials and Filings” and under Sagicor’s profile at www.sedarplus.ca. Non-IFRS and Other Financial Measures The Company reports certain non-IFRS and other financial measures and insurance industry metrics that are used to evaluate its performance. As non-IFRS and other financial measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other companies. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measures. These measures are provided as additional information to complement IFRS measures by providing further understanding of the results of the operations of the Company from management’s perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company’s financial information reported under IFRS. Non-IFRS and other financial measures used to analyze the performance of the Company’s businesses are set out below. Please see the discussion below and the “Non-IFRS and Other Financial Measures” section of our interim Q4 2024 MD&A for an explanation or a reconciliation of certain non-IFRS and other financial measures. Book value per share: To determine the book value per common share, total common shareholders’ equity is divided by the number of shares outstanding at the period end, net of any treasury shares. Core earnings to shareholders: This measure represents core earnings minus the share of core earnings attributable to non-controlling interest. Core earnings yield: This measure is the 2025E core earnings per share divided by the current market share price of SFC shares. Core Dividend Payout Ratio: This is the ratio of dividends paid per share to core basic earnings per share. Deployable Capital to shareholders: This is the sum of shareholders’ equity and net CSM and is roughly analogous to IFRS 4 Book Value. Core dividend payout ratio: This is the ratio of dividends paid per share to core basic earnings per share. IFRS does not prescribe the calculation of dividend pay-out ratio, therefore a comparable measure under IFRS is not available. Dividend yield (annualised): This measure is calculated as the annualised dividend per share in the quarter/period over the d aily average share price in the quarter/period. The annual dividend calculation represents the dividend paid in the year over the daily average share price for the year. Market capitalisation: This is the is aggregate value of the Company’s shares as indicated on the stock market. It is calculated by multiplying the total number of shares by the present share price, at a given date. Financial leverage ratio: The financial leverage ratio is the ratio of notes and loans payable (refer to note 17 of the 2024 consolidated financial statements) to total capital, where total capital is defined as the sum of notes and loans payable, net contractual service margin and total equity. This ratio measures the proportion of debt the Company uses to finance its operations as compared with its capital. Group Life Insurance Capital Adequacy Test (“Group-LICAT”): The Group’s goal is to maintain adequate levels, at sufficient margins above minimum regulatory capital requirements, to maintain consumer confidence as well as credit ratings with external rating agencies. Management engages the Board with regards to actions necessary to maintain appropriate capital levels. Sagicor has voluntarily elected to follow OSFI’s LICAT Guideline, specifically the latest amendment which became effective January 1, 2025. Minimum Continuing Capital and Surplus Requirements (“MCCSR”): Sagicor voluntarily adopted the MCCSR standard as its risk -based assessment measure to provide a consolidated view of capital adequacy. The MCCSR was a standard used by OSFI from 1992 until 2018, when it was superseded by LICAT. When it was in place, OSFI established a supervisory minimum Total Ratio of 150% under MCCSR. Canadian practices for calculation of the MCCSR evolved and changed from inception through its replacement. Sagicor has made certain interpretations in our calculation of the MCCSR, in consultation with our appointed actuary, which we believe appropriately reflect the risk-based assessment of our capital position, including accounting for CSM in MCCSR. Net CSM: This measure is the balance of the direct contractual service margin net of reinsurance contractual service margin. Net CSM to shareholders: This measure is the amount of the net CSM attributable to shareholders. New business CSM: This measure is the amount of the contractual service margin added from contracts initially recognized in the period, net of reinsurance. New business CSM to shareholders: This measure is the amount of the contractual service margin added from contracts initially recognized in the period, net of reinsurance, attributable to shareholders. Policy liabilities: IFRS 17 policy liabilities are defined as the sum of four IFRS measures: investment contract liabilities, reinsurance contract liabilities, insurance contract liabilities, and insurance contract liabilities on account of segregated fund policyholders. Price to Book Ratio (P/B): The Price to Book Ratio measure the market capitalisation of a company relative to its book value of equity. Price to Earnings Ratio (P/E); The Price to Earnings Ratio measures a company’s current share price relative to its earnings per share for an indicated period. Return on Shareholders’ Equity (“ROE”): IFRS does not prescribe the calculation of return on shareholders’ equity and therefore a comparable measure under IFRS is not available. To determine this measure, reported net income/(loss) attributable to shareholders is divided by the average of common shareholders’ equity at the start and end of the quarter, and annually, as the average of the quarterly average common shareholders’ equity for the year. The quarterly return on shareholders’ equity is annualised. This measure provides an indication of overall profitabilit y of the company. Revenues: Revenues is the sum of three IFRS measures: insurance revenue, net investment income, and fees and other income. Share price return: This measure is the per share change in market price of SFC from the close of the ivari acquisition on October 3, 2023, to the market closing price per share of SFC shares on March 12, 2025, divided by the market closing price per share of SFC shares on the date of the close of the ivari acquisition on October 3, 2023. Shareholders equity plus net CSM to shareholders: This measure is the sum of total shareholders’ equity and net CSM to shareholders. It is an important measure for monitoring growth and measuring insurance businesses’ value. Total capital: This measure provides an indicator for evaluating the Company’s performance. Total capital ($3.5 billion as at Q4 2024) is the sum of shareholders’ equity ($960 million), notes and loans payable ($954 million), non- controlling interests ($363 million) and net CSM ($1.2 billion). This measure is the sum of several IFRS measures and net CSM which is a non-IFRS measure. Total Shareholder Return: This measure is the per share change in market price of SFC shares plus dividends per share paid to shareholders of Sagicor from the close of the ivari acquisition on October 3, 2023, to the market closing price per share of SFC shares on March 12, 2025, divided by the market closing price per share of SFC shares on the date of the close of the ivari acquisition on October 3, 2023. Currency Unless otherwise noted, all amounts in this presentation are in United States dollars. 26
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27 By attending the meeting where this presentation is made, by reading the presentation slides or by otherwise receiving the information herein, you will be deemed to have accepted and to have acknowledged the following limitations: The material contained within this is presentation is general background information about Sagicor Financial Company Ltd. (“Sagicor”) and this information is provided solely for use at this presentation. This information is summarized, not complete. This presentation is not intended to be relied upon as advice to potential investors and does not form the basis for an informed investment decision. This presentation and its contents, and any other information communicated to you in connection herewith, are strictly confidential and are being provided to you solely for your information and may not be retransmitted, further distributed or otherwise communicated to any other person or published, in whole or in part, by any medium or in any form, for any purpose. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. No representation or warranty, express or implied, is made concerning, and no reliance may be placed for any purpose whatsoever on, the information contained in this presentation, or any other material discussed verbally, or on its completeness, accuracy or fairness, except as expressly provided by applicable Canadian securities laws. This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of securities of Sagicor in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any of the securities of the corporation described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. Persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment to sell securities. Certain information contained in this news release may be forward-looking statements, including the outlook and financial guidance provided herein. Although Sagicor believes that its outlook is reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statem ents. Sagicor’s outlook serves to provide shareholders, market analysts, investors, and other stakeholders with a basis for adjusting their expectations with regard to our performance throughout the year and may not be appropriate for other purposes. Forward-looking statements are often, but not always, identified by the use of words such as “expect”, “anticipate”, “target”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “will”, “may”, “would” and “should” and similar expressions or words suggesting future outcomes. These forward-looking statements reflect material factors and expectations and assumptions of Sagicor. Sagicor’s estimates, beliefs, assumptions and expectations contained herein are inherently subject to uncertainties and contingencies regarding future events, and as such, are subject to change. Risks and uncertainties not presently known to Sagicor or that it presently believes are not material could cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional information on these and other factors that could affect events and results are included in other documents and reports that will be filed by Sagicor with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca). Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which reflect Sagicor’s estimates, beliefs, assumptions and expectations only as of the date of this document. Sagicor disclaims any obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, new assumptions, future events or otherwise, except as expressly required by law. For a detailed description of the risk factors associated with Sagicor, refer to the “Risk Factors” section of the Company’s management’s discussion and analysis for the three-month and twelve-month periods ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca. In addition, in connection with any future offerings of securities, potential investors must make their own investment decision based solely on the detailed disclosure contained in any offering document of Sagicor delivered in connection with such offering, including without limitation, the section such document entitled “Risk Factors”. Disclaimer