PEAK Reinsurance Co Ltd (Peak Re), a Hong Kong-based global reinsurer, announced on July 28, 2021 that it has reached a definitive agreement to acquire the remaining 50 per cent of issued share capital of Caribbean insurance group NAGICO Holdings Ltd. The terms of the deal were not disclosed.
Headquartered in Philipsburg, Sint Maarten, NAGICO is described as one of the strongest insurers in the region. The NAGICO Group has been in existence since 1982, providing property, casualty and life products along with risk solutions to customers in 21 territories throughout the Caribbean.
“The acquisition of the remaining 50 per cent stake in NAGICO will enhance Peak Re’s geographical and portfolio diversification”— Franz-Josef Hahn, CEO, Peak Re
The two operating subsidiaries of NAGICO Holdings Ltd are National General Insurance Corp in St Maarten and NAGICO Insurance Co Ltd in Anguilla, collectively referred to as NAGICO.
The announcement said that upon completion of the transaction, which is subject to regulatory approvals and other customary closing conditions, NAGICO will become a wholly owned subsidiary of Peak Re.
Peak Re describes the transaction as a natural next step following the company’s initial investment in NAGICO in 2016, in line with its strategy to diversify its portfolio globally.
“NAGICO is a leading composite insurer operating in the Caribbean region,” said Franz-Josef Hahn, CEO of Peak Re.
“It provides a broad range of personal and business insurance solutions. The acquisition of the remaining 50 per cent stake in NAGICO will enhance Peak Re’s geographical and portfolio diversification.”
The company indicates that since the initial investment by Peak Re in August 2016, NAGICO said it has pursued growth opportunities and has expanded its life operations and footprint into the Eastern Caribbean.
The company said it has paid nearly US$1 billion in claims following three Category 5 hurricanes Irma, Maria and Dorian, which devastated countries in the region.