May 2004 Financial News

ICB buyers shortlisted to three

May 10, 2004

Source: Nation Barbados

Sagicor Financial Corporation is one of three financial powerhouses interested in buying the Insurance Corporation of Barbados Limited (ICBL).

Last week, in keeping with this aim, Sagicor, a Barbados-headquartered company with subsidiaries in many Caribbean countries was carrying out due diligence at ICBL, located at Roebuck Street, St Michael.

Trinidad and Tobago Insurance Company and an unnamed organisation complete the list of prospective buyers for the general insurer whose range of cover includes motor, property, liability, accident and sickness, marine, aviation and transit, group life, creditor life, group medical insurance and pensions and pensions management.

ICB, which holds about 23 per cent of the local general insurance market, started operations in 1978 as a Government-owned entity but was partially privatised in 2001 in a prospectus issued during November of the previous year. The state remained its major shareholder with 26 million under the Government of Barbados’ name and two million in two different classes assigned to the National Insurance Board.

Since then, Prime Minister and Minister of Finance Owen Arthur mandated the company to look for a strategic partner, either regional or internationally, who would add value to the company and ensure its long-term survival.

A sub-committee was set up by ICB to deal with the matter and a short list of prospective buyers developed.

Gaining ICB would be an important achievement for Sagicor which recently bought Life of Barbados (LOB) having won a fierce bidding war with the Trinidad-based Guardian Holdings Limited. That acquisition put the Barbados Fire & Commercial Insurance Company, the island’s second largest general insurer in the hands of Sagicor.