Since 1999 Sagicor Financial Corporation has pursued an aggressive acquisition and alliance strategy as it builds capacity in a bid to be globally competitive. The latest target for the regional financial entity is an alliance with a Bahamian company, Family Guardian Corporation Limited (FamGuard).
Sagicor already has a presence in The Bahamas through its wholly owned insurance subsidiary Capital Life Inc. Established in 1983, FamGuard Corporation Limited is the holding company of Family Guardian Insurance Company (founded in 1965), FG General Insurance Agency and BahamaHealth Insurance Brokers and Benefit Consultants.
According to a joint statement by the two companies, negotiations are under way that are expected to result in Sagicor owning approximately 20 per cent equity interest in FamGuard.
Negotiations are expected to be completed in less than three months but officials at Sagicor have declined to reveal at this stage how much the 20 per cent stake in the Bahamian company would cost them.
According to The Bahamas International Securities Exchange (BISE), FamGuard has 8.5 million issued shares out of ten million authorised shares. At last trade on the BISE, FamGroup shares were trading at BAH$4.02 (BAH$1 = BDS$1.95).
According to the joint release, the alliance is part of a wider strategy by FamGuard to position itself to respond to the changing local and international insurance landscape.
Vice-president for Corporate Communications at Sagicor, Melba Smith, told the BUSINESS AUTHORITY the opportunity for the alliance had come at the “right time” and it was a “good fit” since FamGuard was involved in the same core business as Sagicor οΎ– life insurance, annuities, group life, and health. According to the release, FamGuard reported significantly improved results during 2004 with a profit of $3 million. Up to September 2004 earnings per share (EPS) were 35 cents, which marked the highest EPS reported by FamGuard since it went public in 1998.
FamGuard and Sagicor have promised to issue another release once negotiations are concluded.
These negotiations follow on the heels of announced intentions by SFC in the third quarter of last year to obtain a controlling interest in Pan Caribbean Financial Services Ltd, a listed Jamaican group dealing in securities, foreign exchange, merchant banking, asset management, and corporate trust services.
Sagicor already has a firm footing in Jamaica, having led a consortium in 2001 (while still in operation as The Barbados Mutual) which acquired majority shares in Life of Jamaica Limited, and also acquired majority shares in Island Life Insurance Company in Jamaica in 1999.
Barbados Daily
