Sagicor Financial Corporation Limited (SFC) has advised that its exposure to institutions known to be in financial distress is US$9 .4 million or 0.332% of total financial investments of approximately US$2.8 billion. The company`s estimate of projected losses and impairment of capital is US $5 .7 million. The actions proposed to take to abate and mitigate any expected losses in income or impaired capital arising from the exposure are as follows:
(i) SFC has already crystallized its loss in respect of one bank in the US and realized a loss of
US $2.1 million.
(ii) SFC will continue to monitor its portfolios closely, and where the company can determine
that assets are permanently impaired, it will act to avoid further loss by disposing of the
investment. Where prospects for recovery are good, the company will hold.
SFC has advised that given the company`s total exposure is less than 0.5% of total financial investments, its exposure to the financial crisis is not material.
