THE LASCELLES deMercado Group of Companies (Lascelles) has signed a contract to acquire all the issued shares in The Jamaica Insurance Company (JGI), the company announced last night.
Lascelles already has a significant involvement in the general insurance sector through its ownership of Globe Insurance Company of the West Indies Limited (Globe Insurance). The acquisition will not have any immediate impact on the operations of either firm. Existing staff will remain in place and business will continue as usual.
STRATEGIC REVIEW
Following a strategic review, Lascelles is convinced that the future of the Jamaican sector will be greatly influenced by the impending establishment of the Caribbean Single Market and Economy (CSME). Under the CSME it is likely that the Jamaican insurance companies will face increased regional competition.
The purchase of JGI will allow Lascelles to consolidate its position in the local market and provide it with financial and structural base to effectively compete with regional or international competitors. Additionally, Lascelles intends to structure its insurance business with a view to regional expansion. This will allow the Group to take advantage of the opportunities that are likely to arise under the CSME. To this end, Lascelles is discussing the required methodology with the Financial Services Commission (FSC).
UNDERWRITERS
Globe Insurance is one of the largest underwriters of industrial and commercial property and liability insurance in Jamaica. JGI, on the other hand, has concentrated on writing smaller commercial risks and business in the personal insurance market.
With the acquisition of JGI, Lascelles' Insurance Division will have Gross Written Premium in excess of J$1.4 billion and Net Premium of J$650 million. Insurance related assets will exceed J$2 billion.
