THE LIFE of Jamaica (LOJ) Group produced net profits after taxes, attributable to stockholders, of $2.2 billion for the twelve months to December 31, 2005.
This was 57 per cent better than the $1.4 billion recorded for the same period in 2004, according to the unaudited, consolidated financial results released by the board of directors last week. The profits were generated on revenues of $11.6 billion (2004: $7.1 billion).
These results include the consolidation of PanCaribbean Financial Services (PCFS) revenues, expenses, assets and liabilities and 51 per cent of that company's profits for 12 months, nine months of the First Life's group life, health and pension management business and one month of earnings from Cayman General Insurance Company Ltd. (CGI), the company stated in a release.
BASIC EARNINGS PER STOCK UNIT
LOJ's basic earnings per stock unit for the year under review was $0.65 (2004: $0.57) and $0.62 on a fully diluted basis (2004: $0.56). The basic earnings per stock unit were calculated on an average number of 3,426,472,393 shares outstanding for the period. Ordinary shares in issue grew from 2,543,690,130 at December 2004 to 3,716,910,925 at the end of 2005.
The results were negatively influenced by lower interest rates and financing costs of $26.9 million associated with the acquisition of PCFS shares. Balancing those effects were the positives of very good new business growth, a high renewal rate for annual group insurance contracts, realised capital gains from the sale of certain securities and favourable mortality and morbidity experience.
Construction continued on Winchester Estate and Winchester Business Centre where 60 apartments and 120,000 square feet of light commercial and office space are being built. Completion of the residential phase is expected by mid-2006 and the commercial portion by December 2006.
On October 19, 2005 Life of Jamaica Limited announced that through its subsidiary, Sagicor Life of the Cayman Islands Ltd. it intended to acquire a controlling interest in Cayman General Insurance Co Ltd (CGI). This acquisition will allow the LOJ Group to provide property and casualty insurance in the Cayman Islands, as well as augment its interest in health insurance, for which there is a large portfolio in Jamaica expected to realise synergies and cost savings.
The acquisition was finalised on November 30, 2005, with Sagicor Cayman holding a 51 per cent interest, Cayman National Corporation (24.2 per cent) and the Government of Cayman (24 per cent).
