03:01 PM EDT, 04/03/2024 (MT Newswires) -- Sagicor Financial ( SGCFF ) reported Q4/23 EPS of $3.37 (or $0.26 excluding ivari purchase accounting gain), compared with National Bank's +$0.12 forecast (consensus of +$0.17).

Key Takeaways:

Sagicor 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" 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. Target lifted to $9, from $8 previously.

Price: 7.25, Change: -0.14, Percent Change: -1.89