Nov 2012 Financial News

GHL closes Jamaica acquisition

Nov 20, 2012

Guardian Holdings Limited (GHL) yesterday announced that it had received all final approvals from the Financial Services Commission of Jamaica to close the acquisition of 100 per cent of the issued share capital of Globe Insurance Company of Jamaica Limited.

In a joint news release on September 11, GHL and Lascelles deMercado announced that Port-of-Spain based Guardian Holdings had acquired Globe from Lascelles for a cash consideration of US$38m. The September news release described Globe as a “major player in the general insurance market in Jamaica, underwriting the following classes of insurance business: property, motor, liability, accident, engineering and marine.

“The acquisition of Globe is an excellent fit for GHL’s regional growth strategy and puts us in a leadership position in the general insurance market in Jamaica, with approximately 20 per cent share,” said Jeffrey Mack, GHL’s group CEO. GHL’s Jamaican businesses currently account for some 23 per cent of group profits and 17 per cent of total assets.

Yesterday, Mack hinted that Globe would be merged with GHL’s existing general insurance company in Jamaica: “Combining its existing general insurance company, West Indies Alliance, with that of Globe, creates a best-in-class company that will be the largest commercial general insurance company in Jamaica. This will translate into tremendous opportunities for the staffs of the two organisations and will serve the interests of our customers.” GHL acquired all the issued share capital of West Indies Alliance Insurance Company Limited in Jamaica in 2000. GHL has been a significant investor in the Jamaican market, having established Guardian Life Limited in July 1999, following its acquisition of the individual life and pension portfolios of Jamaica Mutual, Crown Eagle, Dyoll Life and Horizon Life. GHL chairman Arthur

Lok Jack said: “The acquisition of Globe is expected to be accretive to the Guardian Holdings’ earnings within the first full year of ownership and reinforces our Group’s commitment to Jamaica.” Managing Director of Lascelles deMercedo, Fraser Thornton, said: “In GHL, Lascelles deMercedo found a buyer, who already had a commitment to the Jamaican market and who is capable of enhancing Globe’s market potential and growth prospects. The transaction is consistent with our strategic objective of concentrating our resources on our core businesses of spirits and distribution.”


Source:
Trinidad Guardian
Tuesday November 20, 2012

http://guardian.co.tt/business/2012-11-19/ghl-closes-jamaica-acquisition