Sagicor Financial Company has released its 2025 annual filings, setting out how the Toronto-listed group is using stronger capital and upgraded ratings to support expansion in life, health and annuity markets in Canada, the US and the Caribbean.
The company reported core earnings to shareholders of $142.3 million for 2025, up 57% year over year and ahead of management’s guidance range of $120 million to $130 million. Core basic earnings per share rose 62% to 104.9 cents, while core return on equity reached 14.2%.
Net income to shareholders fell to $66.9 million from $97.5 million in 2024, reflecting insurance finance expenses and market movements under IFRS 17. Management continues to emphasize core earnings as the preferred measure of underlying performance.
Sagicor’s filings and management commentary highlight a tilt toward North American life and annuity business alongside a reorganization of its Caribbean operations. The group now reports four main segments: Sagicor Canada, Sagicor Life USA, Sagicor Jamaica and Sagicor Life (Caribbean).
According to the MD&A, Sagicor Canada generated segment core earnings of $103.3 million in 2025, with Sagicor Jamaica contributing $47.9 million. The Canadian business, anchored by the ivari acquisition completed in 2023, focuses on individual life for the middle market, distributed through independent advisors. Sagicor Life USA continues to emphasize fixed annuities and life products sold via third-party channels.
In the Caribbean, Sagicor has agreed to combine Sagicor Group Jamaica and Sagicor Life Inc. into a new regional holding company, Sagicor Group Caribbean Limited, which is expected to become the listed entity on the Jamaica Stock Exchange. Sagicor expects to hold approximately 55% of the new holding company at closing. The group says the merger is intended to simplify its regional structure and support a “robust digital transformation” of its Caribbean insurance operations.
The reorganization is notable because it consolidates one of the Caribbean’s largest composite insurance and banking groups under a single listed vehicle, while leaving the Bermuda-headquartered parent more focused on capital allocation and growth in Canada and the US.
The annual information form shows Sagicor ending 2025 with shareholders’ equity of $1.04 billion, up 8% year over year, and net contractual service margin (CSM) to shareholders of $1.12 billion. Shareholders’ equity plus net CSM to shareholders stood at $2.16 billion, equivalent to $15.95 per share (US). The group Life Insurance Capital Adequacy Test (LICAT) ratio was 136%, within the company’s target range, and the financial leverage ratio was 26.9%.
Ratings agencies have continued to move Sagicor further into investment-grade territory. In October 2025, Fitch upgraded the company’s long-term issuer default rating to BBB from BBB– and its senior unsecured debt rating to BBB–, citing “sustained strengthening of core profitability, improved capitalization, two years of consolidated contributions from ivari, and lower debt-financing costs.”
S&P Global Ratings affirmed its BBB long-term issuer credit rating in January 2025 and revised the outlook to positive.
Sagicor also amended its senior unsecured revolving credit facility in November 2025, increasing the maximum amount to $225 million and extending maturity to 2029. Management said the combination of ratings headroom and diversified funding gives it greater flexibility to pursue growth while maintaining regulatory capital ratios.
Like other life insurers, Sagicor’s reported results under IFRS 17 remain sensitive to interest-rate movements and changes in discount rates applied to long-duration liabilities. The company recorded net insurance finance expenses of just over $1.0 billion in 2025, down from about $1.07 billion in 2024, with the swing between core and reported earnings driven largely by market effects on insurance contract liabilities.
Sagicor has continued to highlight measures such as core earnings, new business CSM and shareholders’ equity plus net CSM as better indicators of long-term value creation, a stance broadly in line with peers adapting to IFRS 17. New business CSM reached $167.2 million in 2025, within guidance and slightly ahead of the prior year.
On the back of stronger core results, Sagicor increased its quarterly dividend by 11% in March 2026 to 7.5 cents per share, marking the third consecutive year of double-digit dividend growth announced with fourth-quarter results.
At the same time, the group is maintaining flexibility through its normal course issuer bid, renewed in June 2025 and allowing the repurchase of up to 10% of the public float through June 2026.
The combination of dividend growth, a share repurchase program and ongoing organic and inorganic expansion will be weighed against execution risk in integrating multiple platforms and delivering the targeted 14% to 15% core ROE by 2028.
Sagicor will brief shareholders on its 2025 performance and outlook at its annual and special meeting on May 13, 2026.
