Bermuda-based insurer BF&M is set to acquire Island Heritage, subject to regulatory approval. Cayman insurer Island Heritage was put up for sale in late 2011 by its majority shareholder, Flagstone Re, a Luxembourg-based reinsurer, as part of a strategic restructuring at Flagstone.
The sale of Island Heritage to the property and casualty, life, and health insurer BF&M will create one of the Caribbean’s largest insurers, with capital of more than US$200 million and written premiums of more than US$350 million.
Island Heritage was founded in 1996 in the Cayman Islands and has expanded to offer coverage in 14 countries across the Caribbean.
Island Heritage Chief Executive Officer Garth MacDonald said, “We are extremely pleased to be partnering with a company of BF&M’s reputation and capabilities. We could not possibly have chosen a better strategic alliance. This deal will create tremendous value for our customers, agents and brokers across the Caribbean,” he said.
Island Heritage said with BF&M’s support and capital it expects to be offering new insurance products soon. The company will retain its brand name and management team, and will continue to operate on a standalone basis.
“Customers and partners of Island Heritage will not see their relationship with us changed, and we will continue to offer the high level of services they are accustomed to,” Mr MacDonald said.
BF&M President and Chief Executive Officer John Wight said it is BF&M’s strategy to enhance our footprint in the Caribbean.
“The acquisition by BF&M of Island Heritage is part of the company’s strategic goal of becoming a major insurer in the Caribbean region,” he said. “Island Heritage has a talented team of experienced insurance professionals, and we look forward to working collaboratively with them to enhance their product and service offerings.” BF&M also owns a 51.6 per cent stake in the Insurance Corporation of Barbados Ltd.
BF&M is rated “A” Excellent and Island Heritage is rated “A-” Excellent by AM Best.