BRIDGETOWN, Barbados, Thursday December 28, 2017 – Financial services giant Sagicor, which last year moved its holding company to Bermuda after more than 170 years in Barbados, is preparing to establish a firmer footing in the British overseas territory, according to a recent International Monetary Fund (IMF) report.
The draft report on an October 9-13 mission in Barbados at the invitation of the Financial Services Commission (FSC) states that as a next step to the relocation of the holding company, Sagicor plans to establish a reinsurer in Bermuda to be supervised by regulators there.
“During the mission team’s discussion with the senior management team at Sagicor, we were advised of plans to establish a reinsurance operation in Bermuda, and of the company’s request to the Bermuda Monetary Authority (BMA) to be the agency responsible for group-wide supervision,” stated the draft report by the three-member IMF team of Ralph C Lewars, Lawrie Savage and Rodolfo Wehrhahn.
The team noted that the insurance giant had not established any operational entity in Bermuda as of the date of the mission, and the senior management team was still operating out of Barbados.
The IMF team made it clear in the 16-page report that the new entity “would likely result in a change in home supervision responsibility from Barbados to Bermuda”.
“Given that the type of operation that Sagicor envisions to establish in Bermuda has not been disclosed, it is unclear what responsibility the Bermuda Monetary Authority . . . will have with respect to the group,” the three-member team said.
“Ultimately, the intensity of supervision carried out by the BMA will depend on the type of entity [or] entities that Sagicor ultimately establish in Bermuda, and the importance and risk posed by that [or] those institutions to Bermuda. Both questions are central to avoid supervisory gaps of the Sagicor Group.”
The Barbados-based Sagicor Life Inc is the largest operating entity of the Sagicor group and is currently regulated by the FSC. The Sagicor group does business through more than 50 subsidiary companies in over 20 countries including the United States, spanning a range of businesses such as general insurance, commercial banking, mutual funds, investment advisory services, property management, pension fund asset administration and other financial and non-financial businesses.
SFC is incorporated as a publicly listed holding company, with more than 36,000 shareholders and total assets of more than $13 billion, the equivalent of approximately half of Barbados’ gross domestic product. (Adapted from Barbados Today)