01:43 PM EDT, 04/09/2024 (MT Newswires) -- National Bank notes that Sagicor Financial ( SGCFF ) reported a solid quarter, primarily due to a purchase accounting gain of $448 million (8% above guidance), which provided several positive outcomes: 1) BVPS of C$9.10 was 12% above forecast; 2) SFC's 26.6% leverage ratio was 160 bps lower than forecast; and 3) SFC's 136% LICAT ratio implies a comfortable excess regulatory capital position.

The "bad news", according to analyst Jaeme Gloyn, is that SFC's larger equity position has resulted in 2024 ROE guidance dropping to 10% from 14-16%.

"However, SFC's 13%+ medium-term target is intact and, considering the company's financial flexibility, we believe deployment of excess capital can push its ROE in that direction."

Sagicor is rated Outperform, with a $9 target.

Price: 7.38, Change: +0.03, Percent Change: +0.41