Sagicor Group’s Profit Halves on Melissa Claims While Dolla’s Earnings Jump 44.0%

  • For the second quarter ending June 30, 2026 (Q2 2026), Sagicor Group Jamaica Limited (SJ) and Dolla Financial Services Limited (DOLLA) reported divergent results. SJ’s net profit attributable to stockholders fell 40.0% year-over-year to $2.85Bn, while DOLLA’s grew 28.0% to $169.00Mn.
  • SJ’s decline largely reflected Hurricane Melissa-related claims provisioning, higher onerosity1 and the absence of prior-year gains.
  • SJ’s shortfall starts with the insurance business. Despite a 3.2% increase in insurance revenue to $15.61Bn, service expenses climbed 15.4% to $12.44Bn on elevated claims provisioning related to Hurricane Melissa. This cut insurance service result by 24.6% to $2.66Bn. Meanwhile, net investment income improved 4.6% to $9.33Bn, as a 16.4% increase in net interest income to $8.07Bn compensated for a 40.3% aggregate decline in realised and unrealised capital gains. The group also reported a $1.90Bn or 23.3% increase in other operating expenses to $10.07Bn, leaving profit before taxes 32.5% lower at $4.20Bn.
  • SJ’s Q2 results contributed to a 44.3% decline in its H1 2026 performance. H1 insurance results are down 29.0% to $4.32Bn, net investment income is down 11.6% to $16.67Bn, while operating expenses grew 14.9% to $18.70Bn.
  • As for DOLLA, earnings growth benefited from lower expected credit loss provisions of $34.34Mn (-66.2%), which supported a 23.5% revenue jump. The company had prior-year provisions and write-offs tied to fraudulent loans and continued to benefit from strengthened underwriting and collections. Notably, interest income on loans was also up 3.6%, supported by a larger loan book, but this was largely negated by a 22.2% increase in interest expense.
  • Still, a slower rise in administrative expenses (+5.7%) brought its efficiency ratio to 42% from 56%, which supported earnings. Consequently, profit before taxation grew 47.0% to $194.00Mn, which fed into a 51.6% increase to $382.00Mn year-to-date.
  • Looking ahead, SJ expects its balance sheet, robust risk and governance frameworks and diverse revenue base to support long-term value creation. Still, the group’s earnings remain exposed to claims development and market losses across its insurance books. Meanwhile, DOLLA expects to convert its strengthened liquidity2 into earning assets – prioritising quality secured lending and further reduction of non-performing exposures. However, the group carries concentration in high-yield, single-market lending, where a 14.0% non-performing ratio and elevated funding costs leave limited room for slippage.
  • SJ’s share price has advanced 3.2% year to date to $41.46 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/B of 1.4x, which is above the Main Market Financial sector average of 1.1x. Within the same period, DOLLA has gained 17.2% year-to-date, closing at $3.21 and trading at a P/B of 4.4x. This is below the Junior Market Financial sector average of 1.4x.

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1Onerosity refers to insurance contracts that are onerous under IFRS 17, meaning expected claims and expenses exceed expected premiums. Insurers must recognise the loss on such contracts immediately rather than over the life of the policy, so higher onerosity depresses current-period earnings.

2The $1.50Bn bond issuance strengthened DOLLA’s liquidity by adding fresh lending capacity.

(Sources: Sagicor Group Jamaica Limited & Dolla Financial Services Limited Unaudited Financial Statements & NCBCM Research)