Mr. Andre Mousseau reports

SAGICOR FINANCIAL COMPANY LTD. REPORTS FIRST QUARTER 2023 RESULTS AND ANNOUNCES MEETING OF SHAREHOLDERS, AVAILABILITY OF 2022 MANAGEMENT INFORMATION CIRCULAR, ANNUAL REPORT AND ANNUAL INFORMATION FORM

Sagicor Financial Company Ltd. has released its results for the first quarter ended March 31, 2023. All figures are in United States dollars unless otherwise stated.

Highlights

• Revenues of $418.3-million;
• Insurance revenue of $166.2-million;
• Net insurance and investment result of $88.2-million;
• Total comprehensive income to shareholders of $6.6-million;
• Total comprehensive income of $19.1-million;
• New business CSM of $28.2-million;
• Total net CSM of $690.5-million;
• Shareholders' equity and net CSM to shareholders of $994.9;
• MCCSR ratio of 308 per cent;
• Dividend of 5.625 U.S. cents per common share to be paid during the second quarter of 2023 (22.5 U.S. cents annualized dividend).

Andre Mousseau, group president and chief executive officer, said:

"Sagicor's underlying business economics remained strong as we transitioned to the new accounting standard at the start of Q1. Our results this quarter were affected by mark-to-market gains on investments across all segments, more than offset in some cases by revaluation of liabilities under IFRS 17. We remain well capitalized and committed to executing on our strategic priorities for the remainder of the year, including closing the transformational ivari acquisition which we expect to complete in Q3."

Overall Sagicor Group -- quarterly highlights

Sagicor had a solid Q1 2023 in the face of sustained market volatility and continuing momentum from a successful 2022. New business production was solid in Sagicor Jamaica and Sagicor Life. The company's United States segment posted lower production than the previous year, as the company chose to defer production until later in the quarter based on a more favourable competitive and investment environment, moving settlement of that business into the second quarter. Sagicor remains well capitalized with an MCCSR ratio for its insurance businesses of 308 per cent and a debt to capital ratio of 31.2 per cent.

Net income to shareholders for the quarter excluding one-time costs of $5.2-million relating to the IFRS 17 implementation, the ivari transaction, and the buildout of the company's digital bank in Barbados and an estimated $600,000 of net experience loss, is $7.2-million. The company's results were dominated by asset price movement and the revaluation of liabilities under IFRS 17. The company experienced positive movement through earnings backing surplus from its shareholding in Playa Hotels & Resorts. This was offset by mark-to-market volatility from the delinking of asset and liability values upon the transition to IFRS 17, which resulted in non-economic accounting volatility where the calculated value of the company's liabilities increased more than the appreciation of its assets backing liabilities. Total comprehensive income to shareholders adjusted for the items noted herein would have been $12.4-million for the quarter.

Total capital of $2.1-billion remains strong with the addition of total net CSM of $690-million being categorized as a component of capital. This is due to its importance as a store of value and a future indicator of earnings as it amortizes into net income throughout the life of the insurance contracts.

Transition to IFRS 17 and outlook

Effective Jan. 1, 2023, Sagicor implemented IFRS 17 which replaces IFRS 4 Insurance Contracts. Sagicor previously implemented IFRS 9 Financial Instruments on Jan. 1, 2018, and with the adoption of IFRS 17, Sagicor chose to amend its elections under IFRS 9. The primary election relating to IFRS 9 was designating some financial assets that were previously accounted for at amortized cost and fair value through other comprehensive income that supported insurance liabilities to fair value through profit and loss. Sagicor's strategies and underlying economics of the business have not changed as a result of the new standard, but the presentation of Sagicor's financial results has changed. This transition will provide increased disclosures and analyses to better understand the company's business. With the change in accounting policy, caution should be used when comparing 2023 results with the 2022 results under IFRS 17 as the 2022 results do not reflect the full optimization of the company's models under the new accounting standard.

Sagicor reiterates its preliminary guidance and pro forma impacts of the ivari transaction as previously disclosed in the March 27, 2023, press release. All IFRS 17 financial information is unaudited, for informational purposes only, and is pro forma and forward looking in nature. It is not necessarily indicative of what Sagicor's or ivari's results of operations would have been had Sagicor or ivari reported under IFRS 17 as of Jan. 1, 2022. The impact assumes the acquisition of ivari, with a Q3 2023 targeted close, was completed and it is expected to have the following pro forma impacts:

• Q1 2023 shareholders' equity to be approximately $650-million to 725-million, primarily driven by the bargain purchase gain (negative goodwill) created by the purchase price being lower than ivari's adjusted net assets acquired;
• Q1 2023 CSM to shareholders of approximately $1.1-billion to $1.3-billion, resulting in shareholders' equity and CSM to shareholders capital of approximately $1.8-billion to $2.0-billion;
• 2024 return on shareholders' equity of approximately 14 to 16 per cent;
• High single-digit CSM to shareholders growth, and double-digit net income to shareholders growth beyond 2024;
• Sagicor expects ivari to be accretive on a book value and earnings basis and approximately neutral to return on equity (ROE) upon closing of the transaction;
• Upon the acquisition of ivari, the change in debt to capital (including CSM) ratio is expected to be near neutral.

Business segment performance

Sagicor has three main reporting operating segments: Sagicor Life (includes southern Caribbean), Sagicor Jamaica (of which the company owns 49.1 per cent and which is consolidated by the company) and Sagicor Life USA.

Business segment -- quarterly highlights

Sagicor Life

• Sagicor Life posted solid new business sales growing CSM. Consistent with recent quarters, Q1 saw some continued minor negative experience from the in-force book of business.
• Net income to shareholders was $6.0-million, an increase compared with $500,000 during the same quarter in the prior year.
• Total net CSM was $241.8-million, an increase of 11 per cent Q/Q (quarter over quarter) largely due to new business CSM of $12.0-million during the quarter.

Sagicor Jamaica

• Sagicor Jamaica saw strong individual life production and improving results in its group benefits business due to repricing contracts as a response to medical price inflation. The current capital markets environment in Jamaica continues to impact the investment banking division with lower than targeted net income.
• Sagicor's share of Sagicor Jamaica's net income to shareholders was $7.3-million.
• Total net CSM was $243.2-million which was stable Q/Q due to new business CSM of $8.0-million during the quarter which was mostly offset by amortization of CSM into profit.

Sagicor Life USA

• Sagicor Life USA's new business production was lower than the company's annualized target as it chose to defer production until later in the quarter based on a more favourable competitive and investment environment. This moved settlement of that business into the second quarter.
• Net income to shareholders of $4.4-million increased 106 per cent Y/Y (year over year).
• Total net CSM was $205.4-million, a decrease of 4 per cent Q/Q a result of low new business CSM of $8.2-million from slower production in the quarter more than offset by changes in estimates that adjust CSM and amortization of CSM into profit.

Head office, other and adjustments

• Net loss to shareholders of $16.3-million increased 329 per cent Y/Y.

Dividends

On May 8, 2023, the board of directors of Sagicor Financial Company approved and declared a quarterly dividend of 5.625 U.S. cents per common share. This quarterly dividend will be paid on June 14, 2023, to shareholders of record at the close of business on May 24, 2023. This is the 14th consecutive dividend payment Sagicor will pay to its shareholders since becoming a publicly listed company on the Toronto Stock Exchange.

Subsequent event

On April 20, 2023, Sagicor signed a commitment letter with a Canadian bank for the establishment of a senior unsecured revolving credit facility in an aggregate principal amount of up to $125-million (U.S.).

Normal course issuer bid

Sagicor repurchased 66,044 shares in Q1 2023 for a total cost of approximately $200,000 (U.S.). Since the start of the program in June, 2020, the company has repurchased 8,180,337 shares in the open market for cancellation for an aggregate purchase price of approximately $39.4-million (U.S.). The number of issued and outstanding common shares as at March 31, 2023, was 142,702,568.

Annual and special meeting of shareholders

The annual and special meeting of shareholders will be held at 11 a.m. Eastern Time in Toronto (11 a.m. Atlantic Time in Barbados and Trinidad and Tobago, 10 a.m. Eastern Time in Jamaica) on Friday, June 16, 2023. The company is holding the meeting as a hybrid meeting, which will be conducted in person and via live webcast.

Sagicor is using "notice and access" to deliver its meeting materials and, as a result, the notice of meeting and accompanying management information circular will be accessible on Sagicor's website, under Sagicor's profile on SEDAR. In advance of the meeting, shareholders are encouraged to review the information on the website including the proxy voting procedures.

The in-person meeting will take place at the Hilton Barbados Resort, Needhams Point, St. Michael, Barbados. Shareholders and duly appointed proxyholders who wish to attend the meeting in person are encouraged to preregister by sending an e-mail to agm2023@sagicor.com and they will receive a response confirming their registration.

Registered shareholders and duly appointed proxyholders will be able to virtually attend, participate and vote at the meeting on-line (password: sagicor2023).

As further detailed in the notice of meeting and accompanying management information circular, registered shareholders will receive a form of proxy by mail containing a unique control number that may be used, together with the password sagicor2023, to virtually attend, participate and vote at the meeting. If you are a registered shareholder and you do not receive your form of proxy by June 1, 2023, please send a request for your control number via e-mail to TSX Trust Company at sagicor@tsxtrust.com.

Sagicor's 2022 annual report and 2022 annual information form remain available on the meeting webpage and in the investor relations section of the Sagicor website.

If you wish to receive a paper copy of the notice of meeting, management information circular or any other related document, please contact the TSX Trust Company at sagicor@tsxtrust.com by June 7, 2023.

Management's discussion and analysis and consolidated financial statements (unaudited)

This press release, which was approved by the company's board of directors and audit committee, should be read in conjunction with the company's unaudited consolidated financial statements and accompanying MD&A. The unaudited financial statements and MD&A are available on the company's website and will soon be filed on SEDAR.

Conference call

Sagicor Financial will host a conference call for analysts and investors on Tuesday, May 23, 2023, at 2 p.m. Eastern Time in Toronto (2 p.m. Atlantic Time in Barbados and Trinidad and Tobago, 1 p.m. Eastern Time in Jamaica). To listen to the call via live audio webcast, visit the company's website. The conference call is also available by dialling 1-416-764-8688 or 1-888-390-0546 (North American toll-free) or 08006522435 (United Kingdom) or 1-866-290-2216 (Barbados) or 1-800-207-8221 (Trinidad). To join the conference call without operator assistance, you may register and enter your phone number on-line to receive an automated call back. A replay will also be available until June 23, 2023, by dialling 1-416-764-8677 or 1-888-390-0541 (North American toll-free), passcode 302740 followed by the pound key. A transcript of the call will also be made available on the Sagicor website.

About Sagicor Financial Company Ltd.

Sagicor Financial is a leading financial services provider in the Caribbean, with over 180 years of history, and has a growing presence as a provider of life insurance products in the United States. On Aug. 25, 2022, Sagicor announced that it entered into a definitive agreement to acquire ivari, a leading middle-market individual life insurer in Canada with over 80 years of history in the region. Sagicor offers a wide range of products and services, including life, health and general insurance, banking, pensions, annuities, and real estate. Sagicor's registered office is located at Clarendon House, 2 Church St., Hamilton, HM 11, Bermuda, with its principal office located at Cecil F. De Caires Building, Wildey, St. Michael, Barbados.

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