After two successful acquisitions in this market, Suriname-based insurance provider Assuria wants to be the preferred provider in T&T for general and life insurance. Between April 2013 and March 2015, the company increased its market share by acquiring Gulf Insurance Ltd and Mega Insurance Company Ltd (MIC).
Already one of the largest insurance and financial providers in its home market providing life, pensions, annuities, health, fire, motor and liability, Assuria owns 44 per cent of shares in Suriname's largest bank, DSB Bank. In 2014, its premium income was US$70 million and profit was US$15 million.
Through a notice to T&T shareholders in March 2014, the company announced its shareholding in MIC with the acquisition of 15,791,682 of issued shares. This followed its November 11, 2014, offer to purchase 18,183,334 ordinary shares, or 89 per cent of the issued and outstanding shares of MIC.
Now it is rebranding as Assuria Life T&T Ltd.
Last Friday, the company hosted a cocktail reception at Jaffa's at the Queen's Park Oval to celebrate the rebranding and welcome of newly appointed chief executive, Christopher Henriques.
Mario Merhai, director at Assuria–in an interview with the Business Guardian about the company's strategic direction and the possibility of more acquisitions–said creating synergies is the best move with the two T&T acquisitions. He said there were vacancies when the companies were acquired and resources from one company to service the other was a good move to avoid staff cuts.
"When we fill vacant positions what we ask both companies to do is look to see whether they can share those persons. For instance, both companies operate within the same territories in this market. They have branch offices in the same cities. It is about utilising the existing resources to the benefit of both companies, instead of going and cutting (staff), that's not the idea," he said.
Sales, marketing and technology are the areas where synergies can most successful, Merhai said.
He said the company's decision to rebrand was based on surveys which showed that Mega was not an established brand.
"Our intention, when we expand, is to bring the Assuria brand into the new markets we enter. Because Gulf had an established well-known brand name, we decided to do it in different stages.
"Now with this new acquisition, certainly given the fact that Mega is not widely known in the T&T market as a brand, we thought it was time to set the next step, that is, introducing a full rebranding of the company under Assuria Life T&T.
Merhai, who expressed confidence in T&T's economy and the economies of the region, said it was logical for the company to deepen its footprint in the Caribbean. He added that the T&T market is a well-developed one and "we see opportunity here."
Undaunted by the competitive rivalry in T&T's insurance sector, Merhai referred to Central Bank's 2014 Financial Stability Report which showed that the market "is still encouraging."
"We are still seeing room for growth and opportunity," he said, adding that there is room in the market for a niche player
"We are realistic about our size and capabilities. Our expectations have been set at a realistic level. We feel we can offer attractive solutions without shaking up the market, so nobody has to feel threatened by us."
Fresh brand
While he was in high praise of the accomplishments of former chief executive Albert Tom Yew who is now retired, Merhai said a new brand means a new chief executive.
"We are establishing a fresh brand and we are looking at what the company needs in terms of leadership. The former CEO has done a good job in maintaining the company at a level to what it is. Keeping the relationship going with agents, brokers and customers, the company still has a nice client-customer base. For us it was an opportune time to bring in some fresh leadership, fresh knowledge, fresh views, fresh energy to take the company to a next level."
Merhai said Henriques, the new CEO, is part of the company's strategy to obtain the talent within the market rather than executives from Suriname. He said Henriques is very knowledgeable and skilled and is "the right person to do the job as is also, Jason Clarke, the chief executive at Gulf."
He said: "There are a lot of advantages to having a skilled local person lead your company because they know the market, they know the culture, they know the traditions, they know the regulations, and it is a matter of building a strong leadership within the company between the Suriname shareholder and the ones representing the Suriname shareholder and the local management. What you are seeing now is if you do it the right way you get a nice blend."
He said the same thing was done in Guyana: "Our general manager in Guyana is a local–a Guyanese who does a very good job. From a board position, we have the Suriname executive management participating in the strategic road which the companies are taking. We are offering the guidance we think are necessary.
"We feel that local management is the best way to go. This market there are enough skilled people and we have proven it, because we have found two excellent CEOs."
Strategic direction
Asked whether more acquisitions are planned, Merhai said: "That's hard to say because you never know what crosses your path. There is nothing specific going on now. We have a general and life company, we want to focus on making those two successful and make our offer to the T&T market complete. We'll see what the future brings."
Commenting on Moody's downgrade of T&T, Merhai said his company is headquartered in Suriname which has a lower rating and Assuria still remains a giant there.
"We still manage to grow the company despite unfavourable economic conditions in the country. Regardless of what the rating is, the society won't stop existing. There will still be people living and working and earning an income, owning property and having to Insure their lives and their future.
"There will always be demand for insurance regardless of how favourable or unfavourable the economic situation will be." he said.
"For the long term I don't think the economic situation will become debt unfavourable for enterprises like ours. T&T will prove itself to be an attractive economy. I am confident that in the long term T&T is more favourable rather than less favourable."
Asked why Guyana is lucrative for Assuria, he said, it has very nice growth rates and is developing very well.
"The market is economically becoming more active. The economy is at an emerging stage, therefore, it is the right time for the company to be there to be able to grow the company we have established," he said.