Client withdrawal hits Sagicor's operating cash

Sagicor Life Jamaica Limited reported a deficit of J$6.74 billion in one of its operating cash flow entries in the June quarter, which the company says mainly resulted from a substantial withdrawal of client funds by one investor.

"The entry referred to as 'items not affecting cash and changes to policyholders funds' includes the effect of a significant client withdrawal from an investment fund account," said Ivan Carter, Sagicor's chief financial officer.

Carter did not elaborate on the particular account but noted that the figures are arrived at by adjusting for all non-cash items in the income statement and changes relating to various assets and liabilities on the balance sheet.

On the company's balance sheet, investment contract liabilities totalled J$8.5 billion, down J$4.5 billion from J$12.9 billion at the end of December.

The account withdrawal reduced a J$6.54 billion surplus of operating cash at December 2009 to a deficit of J$3.35 billion at June. But Sagicor's overall cash position, though also reduced by more than $3 billion, remained in surplus at $8.33 billion at the close of the half-year.

Sagicor also reported that its total managed funds portfolio was J$4.4 billion richer in June, at J$214.8 billion, up from December's J$210.4 billion.