Sep 2020 Financial News

NCB Financial Group Limited - Streamlining of Insurance Business

Sep 28, 2020

Following its application to the Financial Services Commission (“FSC”) in June 2020, NCB Financial Group Limited’s (“NCBFG") wholly owned subsidiary in Jamaica, NCB Insurance Company Limited (“NCBIC”) has received approval that will enable NCBFG to streamline the insurance business currently offered by its subsidiaries, NCBIC and Guardian Life Limited (“GLL”).

This approval obtained is in respect of the following:

•      the transfer of 100 percent of NCBIC’s portfolio of insurance and annuities business to GLL which is to take effect on September 30, 2020;
•      licensing of NCBIC as a dealer under the Securities Act; and
•      registration of NCBIC as an insurance agent under the Insurance Act under a new company name.

Following the transfer of its insurance and annuities portfolio NCBIC will operate under a new company name and will sell insurance products as an exclusive agent of GLL as well as continue to provide pension fund administration and investment management services. Insurance policies for existing policyholders will not be impacted, as GLL will honour the contracts being transferred on their current terms.

“We are very pleased to receive approval for our application from the FSC,” said Patrick Hylton, President and Group CEO at NCBFG. “Being able to streamline this area of our business means that we can start benefitting from economies of scale and experience, and continue to optimise our product and service offerings for our customers. Especially in times like these where more people have realised the importance of insurance, we want to be able to give them the best solutions to fit their needs.”

Hylton added that not only will customers benefit from the consolidated offerings in NCBFG’s insurance portfolio, but its business is also expected to see improvements in its operating efficiency and financial performance. According to Hylton, these are key for maintaining viability and stakeholder value in the current economic climate.
 

Source:
The Trinidad and Tobago Stock Exchange Limited
Monday 28th September, 2020