of these assets is sound, we fully expect the values to return as some order of normalcy returns to the financial markets.
at US $581.6 million. Sagicor continues to enjoy a strong credit rating of A (Excellent) from A.M. Best. We have maintained
our Standard & Poor's (S&P) credit rating of BBB+ on Sagicor Life Inc and BBB on the $150 million, 10-year senior
unsecured obligations issued by Sagicor Finance Ltd. On Friday, April 3, 2009, S&P placed these ratings on Credit Watch
with negative implications due to Sagicor's exposure to Jamaica, whose Sovereign rating has recently been downgraded.
Sagicor's success. Nevertheless, in keeping with our prudent investment principles, we have implemented several strategic
initiatives designed to minimise the impact of the Jamaica economy on our Group. While we continue to be committed to
our operations in Jamaica, these operations have declined in relative terms to the remainder of the Group as we continue
to expand and diversify our operations. We fully expect our Jamaica operations to represent less than 15% of the Group
within the next three years.
65% to US $712.0 million. The UK operations, which are now included for a full year, and the Jamaica operations, were the
major contributors to the growth in premium revenue. Net investment and other income remained steady and grew by
6.5% to reach US $336.8 million. Through favourably priced acquisitions for Barbados Farms Limited and for insurance
acquisitions, Amalfi underwriting business by the UK operations, and Industrial Alliance Insurance and Financial Services
Inc. in the Caribbean, we have recorded gains on acquisition totaling US $18.8 million. Net benefits increased by 49% to
US $573.4 million, and expenses have also increased by 32% to US $343.3 million, both being as a result of the acquisitions
and increases in inforce business.
steady growth in business and enjoying good name recognition in the Lloyd's market. It recorded a net income of US $13.0
million for the year. Sagicor Life Insurance Company, our US insurance subsidiary, made good progress in building out its
new business operations and enjoyed solid new business growth, particularly during the second half of the year. Sagicor
US contributed US $9.7 million to Group net income. Barbados Farms Limited made a small operating profit for the year,
and combined with the earlier mentioned gain on acquisition, made a positive contribution to shareholder net income and
long-term shareholder value.
a strong Caribbean company with the capital strength and operating capability to compete internationally, while delivering
good value to our Shareholders, Customers, Staff and Communities.
shaping up to be as challenging a year as was 2008. Sagicor is a well capitalized, diversified financial Group, and while
we enjoy a strong capital position and modest debt to equity ratio, we continue to be vigilant and to manage our affairs
with prudence. We have increased our emphasis on governance and risk management, and capital, liquidity and cost
management are being given increased focus. We continue to focus on rationalising our business operations to enhance
efficiency and the Group's financial performance.
concern. We have seen many institutions, large and small, fall under the current financial and economic pressures.
Governments, both internationally and in the Caribbean, are taking strong measures to cope with the full impact of this
twin crisis. However, we know that just like you, prudence and good stewardship of our resources will see us through these
difficult times. We wish to assure you that Sagicor has a solid capital base and quality assets, and while we are subject
to the influences of the global and regional economic environment, we are well placed to withstand the current external