Jun 2004 Financial News

GHL showing interest in Barbados insurance company

Jun 23, 2004

YET another company is showing an interest in the Insurance Corporation of Barbados Limited (ICBL).

It is Guardian Holdings Limited (GHL), the Trinidadian financial services firm, which last week undertook a due diligence of the ICBL.

Sagicor which has also signalled an interest in acquiring Government’s shares in the ICBL, has already completed a due diligence of the company.

The process involves an assessment of the operations of the ICBL, its books, and the company’s financial performance which will assist GHL should it decide to buy, in formulating an offer for the shares.

In confirming that GHL carried out the due diligence, ICBL’s Managing Director, Wismar Greaves told Business Monday that if someone carries out a due diligence, it is expected they will make an offer.

Should the two companies table offers for Government shares in the ICBL, Greaves does not anticipate that the spirited competition which the two displayed when competing for LOB. He said that the process will be different in terms of the application. “They will make offers to the company and in doing so the offers will go to the shareholder who will then determine which to accept, so there will be no competition between them.”

Analysts believe that having already set it sight on expanding across the Caribbean, GHL could use the opportunity as another attempt to establish a larger presence in the Barbados services sector.

Two years ago GHL was locked in a keen campaign with Sagicor (the then Barbados Mutual) for the acquisition of Life of Barbados Limited. Sagicor won that battle.

Prior to that GHL had indicated an interest to buy into Almond Resorts Incorporated.

Government said it wants to sell the majority of the 67 per cent shareholding it has in the ICBL which was set up in 1978. The other principal shareholders in the ICBL include the National Insurance Department.

In the GHL 2003 financial statements, Peter Ganteaume, Group CEO, said the company intends to grow its life and pensions business by portfolio acquisitions and other alliances throughout the Caribbean.

“We will expand and diversify globally our short term risk underwriting business utilising structures, including subsidiaries, joint ventures and re-insurance treaties that best manage capital utilisation and reduce risk,” Ganteaume said.