Mr. Andre Mousseau reports

SAGICOR FINANCIAL REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS AND ANNOUNCES 7 per cent DIVIDEND INCREASE

Sagicor Financial Company Ltd. has released its results for the fourth quarter and full year ended Dec. 31, 2023. All figures are in U.S. dollars unless otherwise stated.

2023 highlights:

• Net income to shareholders of $532.1-million for 2023;
• Net income to shareholders, excluding the ivari bargain purchase gain and transaction costs, of $99.1-million for 2023;
• New business CSM of $137.0-million for 2023;
• Shareholders equity of $970.9-million, with book value per share of $6.88 (U.S.) or $9.10 (Canadian);
• Shareholders equity plus net CSM to shareholders of $2.1-billion, or $14.93 (U.S.) or $19.74 (Canadian) per share;
• Debt to capital ratio of 26.6 per cent;
• MCCSR ratio of 301 per cent;
• Total LICAT ratio of 136 per cent;
• Increase of 7 per cent in quarterly dividend to six U.S. cents per common share to be paid during the second quarter of 2024 (24-U.S.-cent annualized dividend).

Andre Mousseau, president and chief executive officer, said: "Two thousand twenty-three was a monumental year for Sagicor. Our team worked tirelessly to complete the conversion to [international financial reporting standard] 17, bring ivari into our corporate structure and regain our investment-grade status while driving forward on other initiatives that will drive value in the years to come. I would like to express my gratitude and congratulations to all of our Sagicor team members for a fabulous year."

Mr. Mousseau continued: "We are pleased to set forth our more precise guidance for 2024 of $90-million to $105-million of core net income to shareholders. This is consistent with our prior guidance. The targeted 2024 ROE of approximately 10 per cent is lower than previous guidance due to higher-than-projected book value at the end of 2023. This additional capital will give us flexibility to drive profitable growth in years to come.

"We are also pleased to announce an increase in our dividend to six U.S. cents per quarter. We will continue to balance our meaningful growth opportunities with return of capital to our shareholders through this increasing dividend stream, as well as share buybacks through our normal course issuer bid program. Our new targeted dividend payout guidance will give us a framework to examine possible further dividend increases in the future."

Overall Sagicor group -- financial highlights

Sagicor's exceptional financial results for the year are the product of strong underlying contributions from its segments and the ivari acquisition. Net income to shareholders was $532.1-million, which includes the $448.3-million gain on the ivari acquisition. Its North American operations had strong performance, which included solid underlying results and market experience in Sagicor Canada (ivari) and robust production and profitability in Sagicor Life USA, enabling contributions of $122.1-million and $41.1-million in net income to shareholders, respectively. Sagicor Jamaica also produced another solid year and, coupled with the North American performance, drove the $99.1-million in net income to shareholders, which excludes the ivari bargain purchase gain and associated transaction costs.

In fourth quarter 2023, Sagicor's financial results significantly benefited from the ivari acquisition and its subsidiaries' strong aggregate Q4 results. Net income to shareholders was $485.3-million, of which the bargain purchase gain on the ivari acquisition contributed $448.3-million. Net income to shareholders excluding this gain and associated transaction costs was $51.2-million, driven by the excellent profitability at Sagicor Canada and Sagicor Jamaica during the quarter, offset by charges taken by Sagicor Life and actuarial strengthening in Sagicor Life and Sagicor Life USA. New business production in each of its segments was robust.

Sagicor significantly enhanced its capital position during Q4, more than doubling its shareholders equity and net CSM to shareholders. During Q4, Sagicor increased its shareholders equity by 119 per cent quarter over quarter to $970.9-million driven by the bargain purchase gain on the ivari acquisition and also increased its net CSM to shareholders by 103 per cent quarter over quarter to $1,135.0-million due primarily to the consolidation of ivari's net CSM to shareholders. Sagicor remains well capitalized with an MCCSR ratio for its insurance businesses of 301 per cent and a debt to capital ratio of 26.6 per cent. For the first time, it is disclosing a consolidated total LICAT ratio of 136 per cent.

Sagicor intends to disclose a driver of earnings analysis and adopt a non-IFRS core net income to shareholders 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.

Outlook and medium-term targets

Sagicor is updating its previous guidance on key measures:

• Core net income to shareholders for 2024 is expected to be $90-million to $105-million;
• New business CSM for 2024 is targeted at $180-million to $200-million;
• 2025 target for core net income to shareholders growth of over 10 per cent above 2024;
• Targeted core return on shareholders equity over the medium term of greater than 13 per cent;
• Targeted dividend payout ratio based on core net income to shareholders over the medium term of 30 per cent to 40 per cent.

Dividend increase

On March 26, 2024, the board of directors of Sagicor approved and declared a quarterly dividend of six U.S. cents per common share, an increase of 7 per cent. This quarterly dividend will be paid on April 30, 2024, to shareholders of record at the close of business on April 10, 2024. This will be the 17th consecutive dividend payment Sagicor paid to its shareholders since becoming listed on the Toronto Stock Exchange.

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

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 audited consolidated financial statements and accompanying MD&A. The audited financial statements and MD&A are available on the company's website and will soon be filed on SEDAR+.

Conference call

Sagicor will host a conference call for analysts and investors on Wednesday, April 3, 2024, at 11 a.m. Eastern Daylight Time in Toronto (11 a.m. Atlantic Standard Time in Barbados and Trinidad and Tobago, and 10 a.m. Eastern Standard Time in Jamaica). To listen to the call by live audio webcast, visit the company's website under the tab investor relations. The conference call is also available by dialling 1-416-764-8688 or 1-888-390-0546 (North American toll-free) or 0800-652-2435 (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 to receive an automated callback. A replay will also be available until May 3, 2024, by dialling 1-416-764-8677 or 1-888-390-0541 (North American toll-free), passcode 865801 followed by the number sign. A transcript of the call will also be made available on the Sagicor website.

About Sagicor Financial Company Ltd.

Sagicor (Toronto Stock Exchange: SFC) is a leading financial service provider with over 180 years of history in the Caribbean, over 90 years of history in Canada and a growing presence in the United States with over 70 years of history. Sagicor offers a wide range of products and services, including life, health and general insurance, banking, pensions, annuities, investment management, and real estate.

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