Sagicor Financial : SFCL Annual Report 2023

Together, We're Stronger

2023 Annual Report

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We are a borderless team built on the belief that our collective is our greatest asset. We know that teamwork factors into every triumph. That caring is a currency. That every employee, community member, and the extended Sagicor family are the true sum of our success. They drive us to dream big. To take inspiration. To embrace each individual strength. So we can all soar to new heights.

At Sagicor, our people are our greatest strength and that's why together, we're stronger.

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Table of Contents

1. Financial Highlights

1. Chairman's Message

10 President and Chief Executive Officer's Message

13 Board of Directors

20 Executive Management

28 Environmental, Social and Governance Report 32 Corporate & Social Responsibility

46 People & Culture

50 Client Experience

1. Management Discussion and Analysis

1. Consolidated Financial Statements

1. Shareholder Information

401 Offices

407 Connect with Us

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Financial Highlights

Amounts in US$ millions unless otherwise stated.

SHAREHOLDER RETURNS

SHAREHOLDER NET INCOME(a)

				532
		133	116
87
	(4)
2019	2020	2021	2022	2023
(b)(c)

1. Periods up to and including 2022 on an IFRS 4 basis.
2. From continuing operations.
3. Excluding Alignvest Acquisition II Corporation transaction costs.

COMMON DIVIDENDS

	33	33	32	32
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2019	2020	2021	2022	2023

BOOK VALUE PER SHARE (US$)(a)

7.81		7.92
7.59		7.60
				6.88
2019	2020	2021	2022	2023

(a) Periods up to and including 2022 on an IFRS 4 basis.

BASIC EARNINGS PER SHARE(US¢)(a)

				374.0
		91.9	80.9
57.5
	(2.4)
2019	2020	2021	2022	2023
(b)(c)

1. Periods up to and including 2022 on an IFRS 4 basis.
2. From continuing operations.
3. Excluding Alignvest Acquisition II Corporation transaction costs.

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GROUP RESULTS	MCCSR
NET INCOME(a)	MCCSR(a)

				584
		197	170
147
	(15)
2019	2020	2021	2022	2023
(b)(c)

				301%
			270%
253%		269%
252%
2019	2020	2021	2022	2023

1. Periods up to and including 2022 on an IFRS 4 basis.
2. From continuing operations.
3. Excluding Alignvest Acquisition II Corporation transaction costs.

(a) Periods up to and including 2022 on an IFRS 4 basis.

GROUP FINANCIAL POSITION

DEBT TO CAPITAL (a)

ASSETS (a)

	29.1%	29.6%
	26.6%
22.8%
22.2%

2019 2020 2021 2022 2023

(a) Periods up to and including 2022 on an IFRS 4 basis.

		22,385
		10,766
8,729	9,266	10,378

2019 2020 2021 2022 2023

(a) Periods up to and including 2022 on an IFRS 4 basis.

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A Message from our Chairman

MAHMOOD KHIMJI

Dear Fellow Shareholders,

It is a great pleasure to be writing you as the Chair of the Board of Directors of Sagicor for the third consecutive year. On behalf

of the entire Board, I want to express how tremendously proud we are of Sagicor's accomplishments throughout the year.

TO ALL OUR ESTEEMED SAGICOR TEAM MEMBERS ACROSS NORTH AMERICA,

THE CARIBBEAN

AND BEYOND,

THE BOARD RECOGNIZES AND APPRECIATES YOUR UNWAVERING COMMITMENT.

The collective effort of the entire organization is evident by the outstanding results for 2023, marking a record year in numerous regards.

In 2023, we accomplished many critical strategic objectives. Most importantly, we successfully closed the ivari transaction, integrating their team into our operations and effectively doubling the size of our balance sheet. The acquisition represents a significant milestone in Sagicor's history and extends the Company's reach into the Canadian market with a leading franchise.

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We extend a warm welcome to the ivari team as they join the Sagicor family. ivari is well positioned for continued growth, and we remain confident that this transaction will be transformative

to the future success of our organization. Additionally, Sagicor further expanded our U.S. business, growing both its balance sheet and profitability. In the Caribbean, we are encouraged by management's focus to enhance efficiency and drive growth in our businesses. Furthermore, we are very pleased by the Company's achievement

in reclaiming its investment-grade status, a testament to the dedication and accomplishments of the entire Sagicor team.

Our successful transition to IFRS 17 required an immense effort, and we commend management for their dedication in delivering on this endeavor. We believe that the additional disclosures mandated by the new standard will prove beneficial for all shareholders. The Board continues to maintain an active involvement with management, and the depth of information provided to us has reached unprecedented levels. This heightened transparency has led to enhanced engagement, greater participation in strategic planning, and

improved oversight of the various strategic initiatives currently underway.

I would like to congratulate our former Chief Executive Officer and current Director, The Most Honorable Dodridge Miller, on being awarded Barbados' highest honor, the Order of the Freedom of Barbados. This prestigious recognition reflects his exceptional contributions to the community and his nation, and it underscores his invaluable role on the Board, including his tenure as Chair of the Corporate Governance and Ethics Committee. We were proud to unveil the renaming of the Mutual Building in Bridgetown, Barbados to The Dodridge Miller Economic Justice Building.

To all our esteemed Sagicor team members across North America, the Caribbean and beyond, the Board recognizes and appreciates your unwavering commitment to serving our clients and supporting your communities. To my fellow Board members, I want to thank you for your invaluable contributions and commitment to empowering Sagicor's management team. To our shareholders, on behalf of the Board of Directors, I would like to express my gratitude and appreciation for your continued trust and confidence. As we diligently execute our mandate, we remain

steadfast in driving sustainable growth for the Company and delivering value to you. Lastly, I want to thank Andre Mousseau on a successful first year as Chief Executive Officer of Sagicor. Andre and his team worked tirelessly on the strategic initiatives set before them. The Board has worked closely with the management team,

and we continue to see their determination in serving Sagicor's shareholders more broadly. We believe Sagicor is well positioned for continued growth

and prosperity in the years ahead.

Sincerely yours,

Mahmood Khimji

Chair of the Board of Directors

Sagicor Financial Company Ltd.

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A Message from our President & CEO

ANDRE MOUSSEAU

Dear Shareholders,

It is a privilege to write to you as President and CEO of Sagicor after an exceptional 2023. To our employees and executives, many of whom are fellow shareholders, I extend my thanks and congratulations on your contributions to such a successful year.

2023 in Review

2023 will go down as one of the most transformational of Sagicor's 184 years of history. We executed on several initiatives which have set the foundation for an exciting era of growth in the years to come.

Most importantly, we successfully entered a new major market in Canada through our acquisition of ivari. In so doing we doubled the assets on our balance sheet, providing us significantly more earning power and critical mass for our future growth initiatives. We also improved the relative credit composition of our balance sheet, which was immediately recognized by international ratings agencies who have restored investment grade ratings on Sagicor for the first time in several years. This will enable us to more efficiently access global credit markets to help fund our future growth. As a result of purchasing ivari at a significant discount to its net asset value, we recorded a significant bargain purchase gain. This gain, added on to solid operating results in our other subsidiaries, in particular continued growth in our U.S. subsidiary, resulted in record net income to shareholders of US$532 million for the year.

Another aspect of transformation was imposed on us: a complete redesign of the way in which we present our financial statements. 2023 was the year in which a new accounting standard, IFRS 17, came into effect. IFRS 17 fundamentally altered the financial statements of all insurers using international standards, and in particular

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