Cayman General Insurance Company Ltd. and Sagicor Financial Corporation celebrated their recent partnership with a cocktail reception at the Marriott Beach Resort on Monday.
Sagicor, through its subsidiary company Life of Jamaica Limited, acquired a 51 per cent interest in CGI late last year after many months of negotiations.
CGI’s parent company, Cayman National Corporation, has maintained a 24.2 per cent interest in the company, while the Cayman Islands Government – as part of the settlement of its Hurricane Ivan insurance claim – holds another 24 per cent of the company.
Speaking at the reception, CGI President Danny Scott said the months since Hurricane Ivan had been very difficult.
‘But with adversity comes opportunity, and our relationship with Sagicor is proof of that.’
CNC president and CEO Stuart Dack said the lengthy and tough negotiations were worth it.
‘In Sagicor, we’ve found exactly the right partner,’ he said, noting that the partnership makes CGI the strongest insurer in the Cayman Islands.
Richard Byles, the Chairman of CGI and the CEO of Life of Jamaica said Sagicor was happy to be vested in Cayman General.
‘We see Cayman as a strong economy, and an economy with strong prospects,’ he said.
Mr. Byles also said Sagicor was pleased with having CNC and the Cayman Islands government as its partners.
‘We couldn’t ask for better partners,’ he said.
Mr. Byles said Sagicor has $380 million in assets and made profits of $60 million last year.
‘With the change of ownership, CGI has the ingredients to provide all the comfort and security for your insurance needs.’
Mr. Steve Stoute, Senior Executive Vice President of the Sagicor Group of Companies, noted that Sagicor is the most geographically diverse Caribbean financial institution, with a presence in 22 countries and 41 American states.
‘We look forward to working with this great Caymanian company to service the needs of the Caymanian people and all Caribbean people,’ he said.
Mr. Scott said CGI would unveil new insurance products within two months.
After Hurricane Ivan, CGI was downgraded two by international insurance rater AM Best. It eventually withdrew from the insurance rating process while it worked on resolving hurricane claims and recapitalizing.
Even though that process is now complete after Sagicor’s acquisition, Mr. Scott said CGI would most likely have to wait a full two years before being reinstated in the rating system.
‘But the two years is up in December,’ he said, referring to the fact that the two years started in December 2004.
Sagicor Insurance has an AM Best rating of A-Excellent. Mr. Scott said he had ‘his fingers crossed’ that the same rating would be given to CGI once the rating was restored.