Apr 2007 Financial News

SAGICOR EYES THE U.S.

Apr 16, 2007

SOME 63 million households in the US with incomes ranging between $US50 000 to US$150 000! That's the market that Sagicor Financial Corporation has set its sights on for the leading financial market in this hemisphere. This comes in the wake of the company breaking into the US market only two years ago.

The group along with its US subsidiary, Sagicor Life USA is looking to enhance and develop product offering to realise the potential of the Sagicor brand.

Aspects of strategy which the Group intends to use to realise such growth will include a focus on expanding channels. This will be done through Joint Venture Arrangements, Personal Producing General Agents (PPGAs) and by 2008 a captive Sagicor General Agency. B y 2009, Sagicor Life will seek to have 15-20 Field Marketing Organisations (FMOs), 150-200 Managing General Agencies (MGAs), 7 000 independent agents, and 600 Sagicor Life USA captive General Agents.

According to the Group's prospectus, the US ma rket will be one of primary focus for the company, which has a three tiered strategy. As highlighted by the prospectus, expanding internationally and in the Caribbean is a key to achieving the Group's objectives.

As one of the largest and oldest i nsurance groups in Barbados, this is one Caribbean-based financial group which is looking to take their operations global. Sagicor Life USA is a licensed insurer in 43 states and the District of Columbia, a licensed reinsurer in 45 states and the District of Columbia; and a third-party administrator in all 50 states. Already this week, Sagicor Life USA appointed a new President and CEO, Ken Marshall.

The company currently markets its life insurance products through third-party marketing firms, fina ncial institutions and 650 independent agents located in 43 states and the District of Columbia.

The focus of the new strategic management team is to develop a complete set of insurance and financial solutions and build a distribution network g eared towards satisfying the needs of the middle to upper- middle American market, and in the near future, strengthen its efforts to expand into the Caribbean-American, Hispanic, Asian, and Women segments of this market.

According to the prospectus, Sagicor Life Insurance will continue to seek out consolidation and Merger & Acquisition opportunities to support the business model and to help it achieve critical mass in efficiencies, technologies and finance.

However, the primary focus will be to implement a multi-channel distribution business model that will attract and retain high-integrity financial service professionals who have access to the clients in the target markets. As the prospectus maintains, the business model employed will c ontinue to strengthen the Company's current Managing General Agent (MGA) distribution channel.


Source:
Stacia Browne
The Barbados Advocate
Monday 16th April, 2007

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