March 11th, 2019
Related To: Caribbean Information and Credit Rating Services
11 March 2019
SLJ retains its ‘highest creditworthiness’ rating
Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the rating of jmAAA on the Jamaica national scale on the USD 75 million debt issue (notional) of Sagicor Life Jamaica Limited (SLJ). This rating includes a credit uplift for implied support from SLJ’s ultimate parent company, Sagicor Financial Corporation (SFC), through its controlling interest in Sagicor Group Jamaica Limited (SGJ). The rating indicates that the level of creditworthiness of this obligation, adjudged in relation to other obligations within Jamaica is the highest.
CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is based on CariCRIS’ expectation that SLJ will likely have a steady and predictable revenue stream with modest growth over the next 12 months, consistent with its 3-year trend. We expect the Company to continue to perform well, driven primarily by its overall leading market position in the insurance industry in Jamaica.
The rating of SLJ reflects the Company’s market leadership in the Jamaican insurance industry. SLJ remains the largest life insurance company in Jamaica with significant market shares in several segments of the market. In addition, its established brand equity underpinned by a comprehensive suite of products and services, and supported by a strong distribution network, enable the Company to consistently achieve a healthy financial performance. The rating continues to be supported by overall financial stability, continued healthy profitability and improved financial strength, as measured by its strong capitalisation level, in excess of the regulatory requirement. These supporting factors, however, are tempered by SLJ’s significant business and financial exposure to the highly indebted Jamaican economy. In addition, the protracted low-interest rate environment in Jamaica has the potential to challenge SLJ’s ALM position going forward, thereby adversely impacting its long-term business.
About the Company:
Sagicor Life Jamaica Limited (SLJ), a member of the Sagicor Group of Companies, commenced operations in 1970 as the first Jamaican-owned life insurance company. In 2013, a holding company, Sagicor Group Jamaica Limited (SGJ) was established, and this entity owns 100% of SLJ. Sagicor Life Incorporated (SLI) is the majority shareholder of SGJ and the principal operating subsidiary of Sagicor Financial Corporation (SFC), which itself owns 49.11% of SGJ. SLJ is considered the main operating subsidiary of SGJ. Following the reorganisation of the Jamaican operations, SLJ was delisted from the Jamaica Stock Exchange and replaced by SGJ.
The Company, operating through 12 branches, markets an extensive range of long-term and equity-linked Individual Life insurance products, Group Life, Group Health, Personal Accident plans and Group Pension plans. Some of the Company’s other services include residential and commercial mortgages, annuities, real estate development and management, investment management and lease financing.
For more information on SLJ’s ratings, please visit www.caricris.com or contact:
Mr. André Joseph
Senior Manager, Ratings
Tel: 868-627-8879 ext. 227
E-mail: [email protected]
Ms. Kathryn Budhooram
Tel: 868-627-8879 ext. 226
E-mail: [email protected]
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