Sagicor was forced to fork out $11.45 payouts in insurance claims arising from a large number of death claims last year.
While pointing to this issue, Sagicor reports that there was also a large number of withdrawals from segregated policy funds. Last year’s payout in claims showed a marked increase over the $10.4 billion paid to policyholders or their beneficiaries in 2017.
Arising from this, there was a notable increase in actuarial liabilities at Sagicor Individual Insurance Division, which operates in Jamaica and the Cayman Islands.
However, this was partly offset by releases for mortality experience, expenses and other efficiencies.
The division earns its revenues principally from insurance premiums; mortality charges and other fees; and contributions to segregated policy funds and investment income on assets assigned to cover the liabilities and surplus requirements of the portfolios. This segment continued its strong profitability performance, contributing $4.76 billion to the group for 2018 from revenues of $26.84 billion.
The positive results were driven by excellent new business sales, improved conservation, favourable benefits experiences, release of actuarial reserves (mainly from better premium persistency, expense efficiencies and morbidity), and continued tight control of operating costs. There was an attractive return on the capital allocated to the division.
Net premium income for the ‘individual insurance’ line of business of $23.92 billion was 13 per cent higher than the comparative 2017 period, driven by strong new business in Jamaica where new, annualised, premium income was 15 per cent ahead of last year, and improved conservation of the in-force block of policies resulted in growth of seven per cent.