Want to see TSE:SFC full AI Analyst Report?
Top Page
Sagicor Financial
(TSX:SFC)
Select Model
Select Model
Rating:61Neutral
Price Target:
C$9.00
▼(-0.66% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid current cash flow generation and improving leverage, supported by constructive earnings-call guidance on ROE expansion and strong capitalization. These positives are tempered by historically volatile profitability and identified near-term uncertainties (US legacy life experience/reserve risk and transformation costs), while technicals are neutral and valuation is constrained by a high P/E despite an attractive dividend yield.
Positive Factors
Strong cash generation
Robust operating and free cash flow supports policyholder obligations, dividends, reinvestment and balance-sheet resilience. FCF broadly matching net income also supports earnings quality, although durability across cycles remains important.
Negative Factors
Volatile and inconsistent profitability
Large swings in annual earnings and modest current net margins make future profitability less predictable. This can constrain capital planning and reduce confidence that recent cash generation and ROE improvements will persist through different market and claims cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow supports policyholder obligations, dividends, reinvestment and balance-sheet resilience. FCF broadly matching net income also supports earnings quality, although durability across cycles remains important.
Read all positive factors
Sagicor Financial (SFC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.19B
Dividend Yield4.57%
Average Volume (3M)94.20K
Price to Earnings (P/E)7.5
Beta (1Y)0.15
Revenue Growth-3.85%
EPS Growth8.02%
CountryCA
Employees5,600
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.86
Shares Outstanding135,866,900
10 Day Avg. Volume88,296
30 Day Avg. Volume94,200
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)0.91
Price to Sales (P/S)0.31
P/FCF Ratio0.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.00Price Target Upside21.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.95
Revenue Forecast (FY)N/A
Sagicor Financial Business Overview & Revenue Model
Company Description
Sagicor Financial Co. Ltd. is a financial and insurance company, which engages in the provision of financial services in the Caribbean. It operates through the following segments: Sagicor Canada, Sagicor Life USA, Sagicor Jamaica, Sagicor Life, an...
How the Company Makes Money
Sagicor Financial makes money mainly through its insurance and related financial services operations.
1) Insurance underwriting and policy-related income
- Premium revenue: The company collects premiums from policyholders for life and health insu...
Sagicor Financial Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operational and capital picture: core earnings rebounded strongly QoQ, net income benefited from favorable market moves, capital ratios are solid, dividends and a small buyback were maintained, and a US A.M. Best upgrade supports growth prospects. However, notable risks remain — pronounced quarter-to-quarter investment volatility under IFRS 17, negative insurance experience in the US legacy life block with potential reserve actions, a moderation in annuity sales versus prior-year levels, and expected one-time costs related to the Caribbean transformation. Management emphasized a deliberate focus on long-term ROE and book value creation while accepting some near-term volatility and transformational costs.Positive Updates
Core earnings rebound and strong net income
Core earnings to shareholders rose to $34 million in Q2 26 from $25 million in Q1 26 (≈+36% QoQ). Net income to shareholders was $87 million, materially higher than core earnings driven by favorable interest rate movements and strong equity markets.
Negative Updates
Negative insurance experience in U.S. legacy life block
The US segment reported negative insurance experience again in Q2, primarily in the legacy life block (vintages 2016–2020 and older). Core earnings for Sagicor Life USA were $6 million and decreased year-over-year. Management is performing a deep-dive and indicated possible reserve strengthening could affect CSM or equity.
Read all updates
Q2-2026 Updates
Positive
Negative
Core earnings rebound and strong net income
Core earnings to shareholders rose to $34 million in Q2 26 from $25 million in Q1 26 (≈+36% QoQ). Net income to shareholders was $87 million, materially higher than core earnings driven by favorable interest rate movements and strong equity markets.
Read all positive updates
Company Guidance
Management reiterated a pathway to ROE expansion — Q2 annualized core ROE was 13.6% and management is targeting roughly 14% in 2027 and ~15% in 2028 — while warning of continued quarterly volatility and signaling one‑time charges and investments in Q3–Q4 ahead of the planned Caribbean combination (target close in Q4 but possibly slipping into H1 2027). They expect quick‑win synergies to begin in 2027 with larger technology/process savings in 2028, and to continue strong new business production (Q2 new business CSM $44m; US new business $284m and run‑rate “well through” $1.0bn this year; Canada new business $17m / new business CSM $11m / net CSM $548m; Jamaica net CSM $308m / new business CSM $14m; Sagicor Life net premium $116m / net CSM $248m). Capital and shareholder metrics remain strong: group LICAT 134%, financial leverage 27.4%, Q2 book value $7.65 US ($10.87 CAD), repurchased 500k shares for just under $3m, and continued the quarterly dividend of $0.075 ($0.30 annualized).Sagicor Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.21B | 3.06B | 1.50B | 1.78B | 80.70M | 2.36B |
| Gross Profit | 2.10B | 3.06B | 742.59M | 1.76B | 277.50M | 868.64M |
| EBITDA | 467.63M | 427.73M | 361.61M | 834.01M | -20.17M | 383.44M |
| Net Income | 117.00M | 68.11M | 97.47M | 532.06M | -164.39M | 132.56M |
Balance Sheet | ||||||
| Total Assets | 25.85B | 25.09B | 22.77B | 22.38B | 10.62B | 10.31B |
| Cash, Cash Equivalents and Short-Term Investments | 522.84M | 451.45M | 994.07M | 486.64M | 368.14M | 359.98M |
| Total Debt | 1.08B | 1.74B | 990.09M | 985.81M | 667.57M | 725.25M |
| Total Liabilities | 24.41B | 23.66B | 21.45B | 21.06B | 9.88B | 9.22B |
| Stockholders Equity | 1.04B | 1.03B | 959.69M | 970.93M | 1.08B | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | 1.05B | 1.51B | 196.80M | -67.04M | -176.30M | 109.93M |
| Operating Cash Flow | 1.06B | 1.52B | 214.23M | -39.61M | -154.50M | 124.88M |
| Investing Cash Flow | -14.54M | -15.70M | -14.04M | 6.52M | -26.62M | 36.16M |
| Financing Cash Flow | -17.04M | -46.14M | -64.25M | 239.53M | -65.27M | 140.47M |
Sagicor Financial Technical Analysis
Positive
9.06
Price Trends
8.57
Positive
8.64
Positive
8.77
Positive
Market Momentum
0.10
Negative
52.22
Neutral
69.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SFC, the sentiment is Positive. The current price of 9.06 is above the 20-day moving average (MA) of 8.71, above the 50-day MA of 8.57, and above the 200-day MA of 8.77, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SFC.
Sagicor Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$97.35B | 16.15 | 12.98% | 3.01% | 18.31% | 18.90% | |
74 Outperform | C$79.23B | 18.52 | 15.48% | 2.77% | 4.29% | 21.91% | |
73 Outperform | C$56.56B | 22.24 | 10.91% | 2.76% | 9.74% | -3.94% | |
71 Outperform | C$1.97B | 12.68 | 16.54% | ― | 0.51% | 29.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | C$1.19B | 7.48 | 11.42% | 4.62% | -3.85% | 8.02% |
* Financial Sector Average
TSE:SFC
Sagicor Financial
8.90
1.21
15.66%
TSE:MFC
Manulife Financial
59.92
19.35
47.70%
TSE:GWO
Great-West Lifeco
90.38
37.76
71.76%
TSE:POW
Power Corp of Canada
91.41
35.28
62.86%
TSE:TSU
Trisura Group Ltd
41.73
1.32
3.27%
Sagicor Financial Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Sagicor Financial posts stronger Q2 earnings and advances U.S. and Caribbean growth strategy
Positive
Aug 12, 2026
Sagicor Financial reported core earnings to shareholders of $34.2 million and net income of $86.6 million for the second quarter of 2026, with core basic EPS at 25.1 cents and an annualized core return on equity of 13.6%. New business contractual ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.