GHL buys Jamaican insurance firm
Guardian Holdings Ltd has acquired Globe Insurance Company of Jamaica Ltd for US$38 million from spirits company Lascelles de Mercado.
In a joint statement with Lascelles de Mercado & Co Ltd (LdM), GHL yesterday announced its cash acquisition of 100 per cent of the issued share capital of Globe Insurance Company.
"The successful completion of this transaction is subject to all necessary approvals from the Financial Service Commission of Jamaica," the statement said.
Lascelles was majority owned by CL Financial.
The conglomerate sold its 81.4 per cent stake to foreign company Campari.
Globe Insurance is regarded as a major player in the general insurance market in Jamaica underwriting the following classes of insurance business; property, motor, liability, accident, engineering and marine,
GHL Group chief executive officer Jeffrey Mack said yesterday: "The acquisition of Globe is an excellent fit for GHL's regional growth strategy and puts us in a leadership position in the general insurance market in Jamaica, with approximately 20 per cent share."
GHL has been a significant investor in the Jamaican market, having established Guardian Life Ltd in July 1999, following its acquisition of the individual life and pension portfolios of Jamaica Mutual, Crown Eagle, Dyoll Life and Horizon Life.
In 2000, GHL acquired all the issued share capital of West Indies Alliance Insurance Company Ltd in Jamaica. Post-acquisition, GHL's total Jamaican assets will represent some 23 per cent of Group profits and 17 per cent of total assets, the joint statement said.
Fraser Thornton, managing director of LdM, said yesterday: "In GHL, LdM found a buyer, who already had a commitment to the Jamaican market and who is capable of enhancing Globe's market potential and growth prospects...The transaction is consistent with our strategic objective of concentrating our resources on our core businesses of spirits and distribution."
GHL Group chairman Arthur Lok Jack said of the acquisition yesterday: "The deepening of the Group's position in Jamaica is testimony to the confidence and ongoing commitment of the Guardian Holdings Group to the Jamaican economy and people."
BroadSpan Capital LLC acted as GHL's exclusive financial adviser in this transaction.