Key Points – Sagicor’s Q1 2026 core earnings missed expectations as North American mortality losses and market-related declines weighed on results.
Core earnings to shareholders were $25 million, and management said the underlying run rate would have implied roughly a 13% core ROE absent those temporary pressures. – North American mortality was the main drag, hitting both Canada and the U.S
Canada core earnings fell 9% to $23 million, while Sagicor Life USA posted $5 million in core earnings; management said the first quarter has repeatedly shown weaker mortality trends, but it is too early to say whether that will persist. – Caribbean operations remained a growth bright spot with premium growth in Jamaica and solid new business CSM gains, while the company also advanced plans to merge its Caribbean businesses. Sagicor reaffirmed its longer-term ROE targets of 14% in 2027 and 15% in 2028 and maintained a strong capital position, including a 134% LICAT ratio and a continued quarterly dividend. Sagicor Financial (TSE:SFC) reported softer first-quarter 2026 core earnings as adverse mortality experience in North America and market-related losses weighed on results, though management said it continues to view the company’s underlying return profile as intact.
On the company’s earnings call, President and CEO Andre Mousseau said the quarter was “a bit unusual” because several strategic initiatives are moving in a positive direction, while core earnings came in below what management considers the run rate of the business. Core earnings to shareholders were $25 million, including $8 million of negative core insurance experience, which Mousseau said was “substantially all” related to mortality in the North American segment. He said Sagicor often observes mortality pressure in the first quarter, but unlike last year, gains elsewhere did not offset the impact. “Absent that mortality, we estimate that we would have hit a core ROE of approximately 13%,” Mousseau said.