Apr 2004 Financial News

GHL forges ahead in Europe

Apr 14, 2004

Guardian Holdings Limited (GHL) is pushing into the European market. Managing editor of Insurance Day, Jon Guy, said the Caribbean insurance and financial services group had given clear indication that it was seeking to make a major impact into the British market.

In its March 24 edition Insurance Day, Guy quoted the president of Guardian General Insurance, a GHL subsidiary, Gerrard Lee-Inniss, as saying that he hoped his visit to London as part of a European tour would result in a further acquisition.

The British trade publication noted that GHL was already listed on two of the Caribbean’s top three stock exchanges and was working on the third listing before turning its attention to one in the United States or Britian. GHL’s recent figures, showed profit at $169.9m for 2003.

“We had a tremendously successful year in 2003,” he told Insurance Day. “We acquired Fatum Holding in the Netherlands Antilles and Aruba and business saw significant growth.”

Guardian also acquired Lloyd’s-based Link Underwriting Agency in September from Rubicon and two months later was given approval to set up Link Insurance in Gibraltar. Since then the company has also acquired a 40 per cent stake in Jubilee Motor Policies, which operates through syndicate 1231 at Lloyd’s.

“We’ve been seeking to diversify our operations and the geographical spread of our risk portfolio,” said Lee-Inniss.

“The acquisition of Link Underwriting and the establishment of Link Insurance had enabled us to enter the British and European markets. We’ve already begun to operate in France and I’m hopeful we will be in a position to announce the acquisition of a book of business in the Netherlands shortly. We’re still looking at businesses but they will not be capital-intensive acquisitions.”

“The Caribbean market is strong and since September 11 the rates have been increasing. There was some softening at the 2004 renewals but we’re keen to look beyond the Caribbean. There’s a great deal of consolidation in the Caribbean market. New capacity has entered but it has come from the established players rather then new companies,” he said.

“There is an expectation that the market will continue to consolidate because there’s a demand for more capital to be invested in the companies, and those capital providers whose core business is not insurance are looking at the situation to decide whether to invest or sell the business,” he added.

Lee-Inniss said the company had an operation in Gibraltar because of the consistency of the regulatory environment to that of Bermuda and the Caymans, where the company was already established.

“We believe we can make inroads into the British and European markets. The group is looking at listing on the third of the three major Caribbean exchanges and we will then look to gear ourselves up for a listing in either the United States or Britain,” she added.

Source: Nation (Barbados)
http://www.nationnews.com/StoryView.cfm?Record=48595&Section=LO