The Maritime Financial Group celebrated its 50th anniversary in pomp and splendour last week. This year marked the 50th anniversary of Maritime's presence in the T&T financial market when Maritime Life Assurance of Halifax, Canada, commenced business through a branch operation. Chief operating officer, Andrew Ferguson, gave an account last Friday of the insurance company's start from humble beginnings to the huge conglomerate that exists today and how the industry has evolved at the Hyatt Regency Trinidad hotel, Port-of-Spain. He also gave an idea of the contribution of Steve Ferguson, his father and former managing director, to the industry and the country's development. Incidentally, last Thursday, a day before Maritime held its 50th anniversary celebrations, Steve Ferguson and businessman Ish Galbaransingh, were granted bail in the sum of $2 million each by Justice Ronnie Boodoosingh. They are both wanted in the United States on 95 fraud charges arising from the $1.6 billion Piarco airport project. Andrew noted that in Maritime's early days, building a life insurance company was a challenge. "Our first office occupied a room not more than a 1,000 square feet with eight employees and, today, Maritime offices occupy a 150, 000 square feet with more than 400 highly qualified and trained employees and agents and the group manages more than $1.6 billion in assets," he said.
Evolution of insurance
Andrew said being part of the financial services industry is much more than just providing financial services for clients. He pointed out one of the important periods for the industry during the 1980s was the Government drafting the 1986 Insurance Act, which compelled insurance companies to invest a minimal percentage of their assets in T&T. This policy decision today, he said, has led to the industry investing more than 90 per cent of its assets in T&T. He said, too, that and the life insurance industry contributes to the strength of the economy. "By 1982, arising out of the Government's policy decision, the industry, together with the national insurance board, became the largest collector of long-term savings in the country. The life insurance industry today remains the only industry that continues to promote long savings and, accordingly, the ability to invest in long-term growth of our economy. The need for life insurance and the savings generated should be deployed for continuous development of this country," he said.
Maritime and national development
Andrew boasted that over the last 40 years, Maritime Life has assisted successive governments to implement effective policies that have been in the interest of T&T. From 1986 to 1991, as part of its fiscal policy, the Government embarked on a major tax reform strategy and a Tax Reform Commission was established from representatives of Labour, Business and Government. "Steve, the then managing director, was the chairman. This commission under the then Minister of Planning implemented the only then tax reform this country has seen in the last 40 years. The marginal tax rate for all citizens was reduced from 70 per cent to 35 per cent. That indirect tax rate was introduced in a record time of 18 months," he said. He also recalled that the Government of 1986 to 1991 created a local medical teaching faculty and, by an Act of Parliament, the Eric Williams Medical Sciences Complex, was created.
Steve was also appointed first chairman of its 45-member board.
Andrew argued that his father continued to make his contribution to national development when he was appointed chairman of the National Gas Company in 1998. "Interestingly enough, in support of the Government's local energy policy, Maritime was the first company to utilise natural gas to power Maritime's air-condition system, something now that is considered the only option to power large buildings in T&T." Over the past few years, oil prices have moved from lows of US$9 per barrel to well above US$100 a barrel, but Maritime has continued its support for the Government's infrastructure projects. "Financial services built on careful management and wise investment have put us in a prime position to support Government projects and, over the years, Maritime has provided more than $200 million of direct long-term finance to fund specific government infrastructure projects."
Contemporary period
The year 2010 was a trying period for Maritime, Andrew said. "We performed in a global and local environment of uncertainty. T&T was particularly challenging in terms of the unresolved issue at Colonial Life, low natural gas prices and shrinking oil production, rising government debt and a dissatisfied public sector." Against this background, he is confident that Maritime and its subsidiaries are prepared to treat with challenges facing the sector. "We will continue to develop new financial services products, streamline our operations and technology for operations and is poised to grow." He added that consumers are no longer interested in the rushed and inept services that now characterise business in T&T, specifically the insurance industry.
Maritime's 50-year timeline
1961-The establishment of Maritime's presence in the T&T financial market when Maritime Life Insurance of Halifax, Canada commenced business through a branch operation.
1971-Maritime Life (Caribbean) was incorporated as a local subsidiary.
1977-Maritime Life (Caribbean) Ltd became the first foreign life insurance company to be locally controlled, with 74.2 per cent of the company's shares being owned by T&T nationals.
1983-Maritime Life Assurance Company sold the balance of its holding, passing total ownership into the hands of nationals of T&T.
1988-The Maritime Group was established.
1999-Establishment of the Chaguanas, Marabella, Tobago and San Fernando Financial Services.
2008-Opening of a south regional centre in San Fernando.