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Saturday, April 19, 2014
Trinidad & Tobago Guardian Online
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Sagicor to get £86m from sale of Europe assets
The Sagicor Financial Corporation (SFC) has received approval from the regulatory authorities in the United Kingdom and the Cayman Islands to sell Sagicor Europe Ltd (SEL) and its subsidiaries, which include Sagicor at Lloyd’s Ltd (SAL), to a wholly-owned subsidiary of AmTrust Financial Services, Inc.
SAL is the managing agent of Lloyd’s property/casualty insurance syndicate 1206, with stamp capacity of £200 million, and life insurance syndicate 44, with stamp capacity of £7 million. Stamp capacity refers to the volume of business measured in gross written premiums net of acquisition costs underwritten by the group through its managed syndicates at Lloyd’s of London. SEL is a Cayman Islands-domiciled holding company, and the sale also includes a reinsurance entity and two Lloyd’s corporate members.
“The transaction will provide cash proceeds of £86 million to Sagicor, which consists of £56 million purchase price and the release of £30 million, which supported a Letter of Credit,” the company said in a statement. Miami-based Barbadian SFC president and CEO Dodridge Miller said: “This will remove Sagicor’s exposure to the volatility of the international property and casualty insurance market.”
On August 23, at a simulcast of the company’s 2013 half-year results, Miller had told reporters in Port-of-Spain and Bridgetown that SEL was at fault for the bulk of the company’s US$13.3 million loss for the period. “The sale (of Sagicor at Lloyd’s) will return approximately US$130 million in cash capital to the group,” he said, adding that the sale of SEL “will remove the drag on future earnings of the group.”
Sagicor describes itself as a “provider of financial services in the Caribbean.” Operating in 22 countries, including the UK, USA and Latin America, Sagicor has total assets in excess of US$5.5 billion. The Sagicor Group offers a wide range of products and services, including life insurance, annuities and group and individual health insurance. Sagicor has approximately 600,000 policyholders.
Sagicor is a widely-held publicly-traded company with more than 37,000 shareholders. It is listed on the stock exchanges of Barbados, T&T and London.
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