Mr. Andre Mousseau reports

SAGICOR FINANCIAL COMPANY LTD. REPORTS SECOND QUARTER 2023 RESULTS

Sagicor Financial Company Ltd. has released its results for the second quarter ended June 30, 2023. All figures are in U.S. dollars unless otherwise stated.

Q2 highlights:

• Revenues(1) of $312.9 million
• Insurance revenue of $165.9 million
• Net insurance and investment result of $156.6 million
• Net income to shareholders of $48.8 million
• Estimated core earnings to shareholders(1) of $13.0 million
• Total comprehensive income to shareholders of $43.4 million
• New business CSM(1) of $48.4 million
• Total net CSM(1) of $697.1 million
• Shareholders' equity and net CSM to shareholders(1) of $1,035.9 million
• MCCSR ratio(1) of 286%
• Dividend of US$0.05625 per common share to be paid during the third quarter of 2023 (US$0.225 annualised dividend)

Andre Mousseau, President and Chief Executive Officer, said:

"Sagicor had a strong second quarter. We delivered solid core results in each of our segments. We also benefited from refinements to the inputs to our discount rates on liabilities which reduced the negative mark to market accounting volatility we observed in the first quarter of 2023. We believe our estimated core earnings to shareholders(1) this quarter of $13 million to be a more accurate reflection of our underlying business performance."

Overall Sagicor Group - Quarterly Highlights

Sagicor had Q2 2023 net income to shareholders of $48.8 million. New business production in each of our segments was robust, with Sagicor Life USA posting excellent sales during the quarter in a favorable competitive and investment environment. Sagicor Jamaica and Sagicor Life generated net income to shareholders of $10.8 million and $8.7 million respectively. Due in part to the refinement in the discount rate inputs at Sagicor Life USA, that segment reported net income to shareholders of $54.6 million.

Sagicor remains well capitalized with an MCCSR ratio(1) for its insurance businesses of 286% and a debt to capital ratio(1) of 30.4%. Total capital(2) of $2.1 billion includes total net CSM(1) of $697 million as a component of capital. This is due to its importance as a store of value and a future indicator of earnings as it is expected to amortize into net income throughout the life of the insurance contracts.

Sagicor intends to disclose a drivers of earnings analysis and adopt a non-IFRS core earnings measure in future quarters. Sagicor believes this will support users' understanding of the underlying financial performance and the long-term performance and valuation of the business. We estimate core earnings to shareholders(1) under the currently proposed definition for Q2 2023 to be $13.0 million which excludes $35.8 million of adjustments from net income to shareholders. The adjustments in the second quarter consist of $52.7 million of market experience gains, $0.4 million in losses from actuarial methods and assumptions, $3.6 million in one-time costs from IFRS 17 implementation and the ivari project, $2.7 million in other items such as amortization of intangibles, and $10.3 million consisting of the tax effects of the aforementioned. The market experience gain in Sagicor Life USA was partially offset by market experience losses in Sagicor Life and Sagicor Jamaica.

ivari Update and Outlook

Sagicor is currently awaiting receipt of regulatory approvals required under the Canadian Insurance Companies Act with respect to the acquisition of ivari. All other conditions for closing, except those that are only capable of being satisfied on closing, have been satisfied. We continue to expect to receive regulatory approvals for the acquisition in Q3 2023 with closing occurring shortly thereafter.

Sagicor reiterates its preliminary guidance and pro-forma impacts of the ivari transaction as previously disclosed in the March 27, 2023, press release, and reiterated in its May 15, 2023, Q1 2023 results 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 January 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:

• Sagicor's current Q2 2023 shareholders' equity of $463 million would increase primarily by the bargain purchase gain (negative goodwill) created by the purchase price being lower than ivari's adjusted net assets acquired. Pro-forma we expect shareholders' equity will be approximately $650 to 725 million;
• Sagicor's current Q2 2023 net CSM to shareholders(1) is $573 million and pro-forma we expect net CSM to shareholders will be approximately $1.1 to 1.3 billion;
• Sagicor's current Q2 2023 shareholders' equity and net CSM to shareholders capital is $1,036 million and pro-forma we expect shareholders' equity and net CSM to shareholders capital will be approximately $1.8 to 2.0 billion;
• Pro-forma 2024 return on shareholders' equity(1) will be approximately 14 to 16%;
• Beyond 2024 the pro-forma company will target high single-digit CSM to shareholders(1) growth and double-digit net income to shareholders growth;
• Sagicor expects ivari to be accretive on a book value and earnings basis and approximately neutral to return on equity (ROE)(1) upon closing of the transaction; and
• Upon the acquisition of ivari, the change in debt to capital (including CSM)(1) 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% and which is consolidated by the Company), and Sagicor Life USA.

Business Segment - Quarterly Highlights

Sagicor Life

• Sagicor Life posted solid new business production growing CSM. Consistent with recent quarters, Q2 saw some continued modest negative experience from the in-force book of business.
• Net income to shareholders, which was impacted by negative market experience, was $8.7 million.
• Total net CSM(1) was $245.8 million, an increase of 2% Q/Q largely due to new business CSM(1) of $14.0 million during the quarter.
• During Q2 management made certain reorganizational changes that resulted in the Sagicor General Insurance Inc. subsidiary now being reported within the Sagicor Life segment rather than Head Office and Other. Prior period amounts were restated to conform to current period presentation.

Sagicor Jamaica

• Sagicor Jamaica continued to see strong life insurance production and improving results in its short-term insurance businesses. Commercial banking saw revenue growth due to greater card payment activity and increased net interest margins. The current capital markets environment in Jamaica continues to negatively impact the investment banking division leading to lower than targeted net income.
• Sagicor's share of Sagicor Jamaica's net income to shareholders was $10.8 million.
• Total net CSM(1) was $243.1 million which was stable Q/Q due to new business CSM(1) of $8.3 million during the quarter which was mostly offset by amortization of CSM into profit.

Sagicor Life USA

• Sagicor Life USA's new business production(1) of $443.7 million was excellent due to the favorable competitive and investment environment. This led to robust growth in new business CSM.
• Net income to shareholders of $54.6 million, which included a refinement in the discount rate which resulted in a positive impact to net income to shareholders.
• Total net CSM(1) was $208.3 million, an increase of 1% Q/Q as strong new business CSM(1) of $26.1 million from excellent production in the quarter was partly offset by changes in estimates that adjust CSM and amortization of CSM into profit.
• Head Office, Other and Adjustments
• Net loss to shareholders of $25.3 million.

Dividends

On August 10, 2023, the Board of Directors of Sagicor Financial Company Ltd. approved and declared a quarterly dividend of US$0.05625 per common share. This quarterly dividend will be paid on September 13, 2023, to shareholders of record at the close of business on August 23, 2023. This is the fifteenth consecutive dividend payment Sagicor will pay to its shareholders since becoming a publicly listed company on the Toronto Stock Exchange.

Subsequent Event

On August 2, 2023, Sagicor established a senior unsecured revolving credit facility in an aggregate principal amount of up to US$125 million.

Normal Course Issuer Bid

Sagicor repurchased 486,424 shares which were cancelled in Q2 2023 for a total cost of approximately US$1.8 million. The number of issued and outstanding common shares as at June 30, 2023 was 142,697,311.

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 at www.sagicor.com and will soon be filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca.

Conference Call

Sagicor Financial Company Ltd. will host a conference call for analysts and investors on Monday, August 14, 2023, at 3:00 p.m. Eastern Daylight Time in Toronto (3:00 p.m. Atlantic Standard Time in Barbados and Trinidad and Tobago, 2:00 p.m. Eastern Standard Time in Jamaica). To listen to the call via live audio webcast, visit the Company's website at www.sagicor.com, under the tab "Investor Relations." The conference call is also available by dialing 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 at https://emportal.ink/3OAYzrj to receive an automated call back. A replay will also be available until September 14, 2023, by dialing 1-416-764-8677 or 1-888-390-0541 (North American toll free), passcode 298315#. A transcript of the call will also be made available on www.sagicor.com.

About Sagicor Financial Company Ltd.

Sagicor Financial Company Ltd. (TSX: SFC) 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 August 25, 2022, Sagicor announced that it had 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 Street, Hamilton, HM 11, Bermuda, with its principal office located at Cecil F De Caires Building, Wildey, St. Michael, Barbados. Additional information about Sagicor can be obtained by visiting www.sagicor.com.

We seek Safe Harbor.