Christopher Zacca President & CEO of Sagicor Group Jamaica Limited (SGJ or the Group), has released the following performance report for the year ended December 2025.
OVERVIEW
Sagicor Group Jamaica recorded net profit attributable to stockholders of $16.22 billion, delivering exceptional growth compared to the $9.24 billion in the prior year. Growth across our primary business lines, coupled with a recovery in the asset portfolio, contributed to improved realised and unrealised gains. Core earnings, which measure the underlying performance of the Group’s operations and exclude market‑related impacts on insurance assets and liabilities as well as other non‑recurring items, also improved materially year over year.
The Group ended 2025 almost doubling earnings per share attributable to stockholders (EPS) to $4.16 (2024: $2.37) and Return on Equity (ROE) of 15% (2024: 9%).
While the Group delivered a strong full‑year performance, fourth‑quarter results were adversely affected by Hurricane Melissa, most notably within the Banking and General Insurance segments. The category 5 hurricane, which made landfall on October 28, 2025, resulted in extended branch closures in the western parishes, increased insurance claims, and additional costs related to branch restoration and team member welfare. Operations across all affected locations have since been restored, including at Sagicor Bank Jamaica’s Black River branch, which reopened on December 18, 2025. Sagicor remains the only bank serving the Black River community, reinforcing our commitment to maintaining essential financial services in the area. As rebuilding efforts continue across the country, we expect the financial and operational impacts to ease.
On December 16, 2025, Sagicor Group Jamaica entered into a landmark agreement with Sagicor Financial Company Limited (SFC) to merge Sagicor Life Inc. (SLI) into the Group under a unified Caribbean holding structure, Sagicor Group Caribbean (SGC). This transaction will create a cohesive regional platform, allowing us to better serve our clients across all business segments. The combined entity is expected to unlock meaningful value through enhanced scale, operational efficiency, and deeper integration across our life insurance and financial services operations. The transaction, which remains subject to regulatory and shareholder approvals, will enhance Sagicor’s competitiveness while creating new opportunities for all stakeholders.
Sagicor Group Jamaica’s insurance revenue increased by $5.73 billion, or 11%, year over year, driven by higher new policy counts and premium growth across both the long‑term and short‑term insurance lines. Net investment income of $35.89 billion was 29% above the prior year’s $27.90 billion. Realised and unrealised gains, which increased by a total of $6.32 billion, were partially offset by an increase in credit impairment provisions as a result of the hurricane. Fees and other revenue improved by 8% to $20.24 billion, primarily driven by commercial banking activities.
As at December 2025, stockholders’ equity increased to $115.05 billion (Dec 2024: $102.17 billion), after dividends of $6.48 billion were declared during the year. Total assets ended the period at $703.60 billion (Dec 2024: $597.79 billion), driven primarily by a $62.03 billion increase in financial investments and an $18.89 billion expansion of the loan portfolio. This growth in assets was largely funded by a $46.55 billion increase in deposit and security liabilities, and a $39.29 billion growth in insurance liabilities.
Long-Term Insurance
This segment is comprised of products whose contract boundaries exceed one year in duration and are measured using the General Measurement Model (GMM) and Variable Fee Approach (VFA) under the International Financial Reporting Standards (IFRS) 17 framework. Long‑term insurance produced net profit of $9.32 billion (2024: $6.07 billion). The segment continues to experience meaningful revenue growth, benefiting from the release of Contractual Service Margin (CSM) of $6.34 billion (2024: $5.90 billion) and the generation of new business CSM of $7.94 billion (2024: $6.42 billion). The insurance service result improved significantly over the prior year, which included a one‑off adjustment to the actuarial models that increased the loss component and caused insurance expenses to be abnormally high. The segment was also positively impacted by $0.72 billion in net mark‑to‑market experience gains (2024: ‑$0.99 billion).
Short-Term Insurance
This segment includes products whose contract boundaries are less than one year and are measured using the Premium Allocation Approach (PAA) under IFRS 17. Short‑term insurance reported improved insurance revenue of $37.87 billion (2024: $34.77 billion) and net profit of $3.38 billion (2024: $1.43 billion). Group health and life products generated new business sales of $1.10 billion, primarily from the corporate client portfolio, underscoring the segment’s continued growth. The increase in general insurance claims arising from Hurricane Melissa was largely offset by reinsurance recoveries, consistent with disciplined underwriting and sound risk management.
Commercial Banking
This segment produced net profit of $4.01 billion (2024: $3.81 billion). It recorded a 10% increase in revenue, supported by higher net interest income and larger transaction volumes on its card payments portfolios. The loan portfolios continued to grow, with $36.97 billion in new loans written contributing to a $2.01 billion increase in interest income. Deposits and other funding liabilities grew by $22.06 billion (2024: $14.35 billion) during the year.
Investment Banking
This segment recorded net profit of $1.67 billion compared to the prior year’s $0.89 billion. Net investment income of $4.55 billion increased by 50% (2024: $3.03 billion), primarily due to net trading income of $1.26 billion. Although short‑term funding rates remained high, interest expense remained flat at $5.07 billion (2024: $5.08 billion).
LIQUIDITY AND SOLVENCY
Cash and cash equivalents at the end of the year were $58.18 billion (2024: $54.01 billion). The Group’s net cash used in operating activities during the period was $31.83 billion (2024: $4.15 billion). This was driven by a $30.91 billion increase in net investment purchases funded by the growth in deposits and securities liabilities. Regulatory capital requirements continue to be exceeded by all operating entities.
OUTLOOK
Global economic conditions in the fourth quarter reflected a gradual shift toward monetary easing in the United States. The US Federal Reserve reduced policy rates by 25 basis points in December and subsequently held rates steady at the 3.5% to 3.75% range at its January 2026 meeting. This marked three rate cuts in 2025, implemented in response to a weakening labour market and economic uncertainty, with further rate reductions expected later in 2026. Equity markets posted moderate gains, with the S&P 500 ending the year positively, supported by lower interest rates and continued investor appetite for technology and artificial intelligence‑related stocks.
In Jamaica, fourth‑quarter economic conditions were defined by the landfall of Hurricane Melissa. The World Bank estimates the physical damage to be US$8.8 billion, or 41% of FY 2024 Gross Domestic Product (GDP), revised upward from preliminary estimates of between 28% and 32%. This represents the most severe natural disaster impact in Jamaica’s history, with recovery timelines extending beyond 2029. Economic activity is estimated to have contracted between 11% and 13% in the fourth quarter, reflecting widespread disruption across productive sectors and damage to labour, capital, and infrastructure. Importantly, delays in hotel reopenings and weakerthan‑anticipated tourist demand suggest that full recovery of the hotel room capacity is not expected until December 2026. For FY2025/2026, the Bank of Jamaica (BOJ) projects a decline in real GDP in the range of ‑1.0% to ‑3.0%, a smaller contraction that the previous estimate.
Inflation remained contained, with point‑to‑point inflation at 4.5% in December and 3.9% in January 2026, driven primarily by higher food costs due to supply constraints. In February 2026, the BOJ reduced its policy rate by 25 basis points to 5.50%, reflecting a more favourable inflation outlook and an assessment that the direct inflationary impact of Hurricane Melissa was less severe than initially anticipated. The central bank expects inflation to trend broadly within its 4.0% to 6.0% target range over the medium term, while it remains proactive in supporting relative stability in the foreign exchange market. Net International Reserves rose to US$6.7 billion as at January 2026, supported by inflows and reinsurance receipts.
Despite the severity of the hurricane, the economy is in full recovery mode. To date, Jamaica has secured critical liquidity totalling US$662 million, including proceeds from the World Bank Catastrophe Bond as well as local and international Contingency and Natural Disaster Relief Funds. While climate‑related shocks remain a significant risk to national economic development, continued support from international partners provides a strong foundation for recovery and future growth prospects. Post‑disaster reconstruction and resilience initiatives, including the rebuilding of critical infrastructure, are expected to commence in FY 2026/27 under the National Reconstruction & Resilience Authority.
Notwithstanding the significant headwinds posed by Hurricane Melissa, Sagicor Group Jamaica continued to deliver solid financial performance and maintain sound liquidity. The Group’s strong reserves, robust risk and governance frameworks, and diverse revenue base support resilience and long‑term value creation in a challenging environment.
