Jun 2004 Financial News

Sagicor pursuing Government’s shares in ICBL

Jun 02, 2004

SAGICOR says it is interested in acquiring Government’s shares in the Insurance Corporation of Barbados Limited (ICBL). News of this has come from Dodridge Miller, CEO and president of Sagicor whose general insurance entity Sagicor General controls about 18 per cent of the general insurance market in Barbados.

Government has indicated it wants to divest its 67 per cent shareholding in the ICBL and, according to Miller, “we have indicated an interest and we are we are having discussions”.

Miller who declined to go into details about the negotiations, including how much Sagicor is willing to pay for the ICBL, spoke to a group of Barbadian journalists during their tour last week to Sagicor’s offices in Tampa (Florida), Jamaica and Trinidad and Tobago.

“Our market share in the general insurance industry is around 18 per cent. We would like to see that market share increased and we have taken a strategic decision and are actively exploring and making an offer for the Government’s interest in the ICBL,” Miller said while noting that the Group is happy with its market share in the life insurance industry.

Sagicor presently has between 60 and 70 per cent of the life insurance market.

Last year Government sold the majority of its shares in the Barbados National Bank (BNB), the former sister institution of the ICBL.

Those shares were sold to Republic Bank of Trinidad and Tobago.

It is also expected that like the BNB, whoever acquires the majority of the Government shares in the ICBL will trigger the 25 per cent takeover threshold and, as such, will have to make an offer to all the other shareholders in the ICBL.

The ICBL’s share price is about $3.85.

Source: Barbados Advocate
http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=17687