Sagicor Financial Corporation Limited announced that its subsidiary, Sagicor Life Inc (SLI), effective September 30, has entered into agreements to acquire the traditional insurance portfolios of both Colonial Life Insurance Company (Trinidad) Limited (CLICO) and British American Insurance Company Trinidad Limited (BAT).
The Trinidad and Tobago-based company will also acquire and assume contracts negotiated under CLICO’s pension management, administration and investment services operation.
“Sagicor emerged as the preferred buyer in an open and very competitive tender process with guidance from independent global industry experts,” noted Claire Gomez-Miller, CLICO’s executive chairman and BAT’s chairman, in a statement posted on Sagicor Financial Corporation’s website.
SLI will assume liabilities related to insurance policies, as well as the acquisition of reinsurance contracts and investment assets to support those liabilities, according to a notice posted on the website of the Trinidad and Tobago Stock Exchange.
“Approximately US$1.2 billion of total investment assets are proposed to be acquired to offset a similar amount of actuarial liabilities which are expected to be assumed,” the notice reads.
SLI will acquire and assume a combination of ordinary long-term life insurance policies — including universal life, whole life and term life policies and annuities — in addition to group life, health, and creditor insurance policies once the agreements are finalised.
The finalisation of the transactions under review is subject to regulatory approvals and the absence of a material adverse change.
“Sagicor emerged as the preferred buyer in an open and very competitive tender process with guidance from independent global industry experts”— Claire Gomez-Miller, CLICO executive chairman and BAT chairman
Sagicor Financial Corporation, the parent for Sagicor Life Inc, posted revenues of US$992.8 million for six months ended June 30, 2019 — a 57 per cent increase over the US$633.3 million reported for the same period last year. The group also recorded an increase in net income for the period of 32.5, or US$19 million more than the US$39.4 million posted in 2018.
The Trinidad & Tobago operations contributed 9.5 per cent to Sagicor Financial Corporation’s over total revenues for the six-month period.
Another subsidiary, Sagicor Group Jamaica Limited, last month announced it acquired shares in Advantage General Insurance Company from NCB Financial Group in that country.