Vanguard Risk Solutions has announced it is acquiring well-known local broker Balderamos Insurance Services Ltd.
The company says the acquisition will create a stronger local insurance broker amid a resurgent domestic market.
The purchase follows a steady trend of consolidation among Caymanian insurance brokers.
According to the latest data from the Cayman Islands Monetary Authority, which regulates the industry, there were 23 insurance brokers in Cayman in 2023, down from 26 in 2018.
At the time of the announcement on 20 Oct., Balderamos employed five staff, while Vanguard has more than 30.
“Our staff will retain their jobs,” said Andrea Balderamos, who will be appointed CEO of the new, larger Vanguard operation once the acquisition has been approved by the authority.
“We both have niche market specialties, and by combining the groups, we’ll be able to offer all our clients something new and enhanced,” said Balderamos.
“Each company also has their own varying level of expertise, not only in products and services, but also in terms of staff and their qualifications, which means our clients will also now have access to greater resources and market expertise.”
Growing local insurance market
The acquisition plan comes amid a period of resurgence in the local insurance market, with government-owned insurer CINICO expanding from its healthcare roots and aggressively promoting property insurance.
“The emergence of CINICO in the general insurance market, I feel, offers customers and, by extension, brokers an additional choice of insurance carrier,” said Balderamos. “Their pricing is certainly competitive, and their products seem to be just as robust as other carriers.”
More generally, the jurisdiction’s rapid economic and population growth has also driven the insurance market.
According to data from the Cayman Islands Monetary Authority, total gross written premium and assumed reinsurance premium generated by the domestic insurance companies amounted to $578.8 million at the end of 2017. By 31 Dec. 2023, that had grown to $841.7 million.
“We’re expecting to see general market growth over the next couple of years, with increased capacity from insurers and reinsurers,” said Balderamos.
Family-owned Balderamos Insurance Services became well-known to Caymanians in the aftermath of Hurricane Ivan, when it was perceived to respect claims more fairly than some other brokers at the time.
“The devastation Jamaica has seen with Hurricane Melissa is unimaginable,” said Balderamos, daughter of founder Eddie Balderamos. “My heart goes out to all those who’ve been affected. I don’t think people in Cayman have forgotten what happened during Hurricane Ivan, as most, if not all of us, were affected somehow.”
Now, more than 20 years after Hurricane Ivan, Balderamos Insurance Services is being sold. “I am so incredibly proud of my parents for creating such a remarkable legacy, and I’m truly honoured to have been a part of their amazing accomplishment,” said Balderamos.
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