PORT OF SPAIN, Trinidad, Saturday October 5, 2019 – Insurance giant Sagicor is acquiring the traditional insurance portfolios of Colonial Life Insurance Company (Trinidad) Limited (CLICO) and British American Insurance Company (Trinidad) Limited (BAT).
Since 2009, both CLICO and BAT had been under the control of the Central Bank of Trinidad and Tobago (CBTT) and a resolution strategy with several phases was developed to stabilize the activities of the institutions.
A key component of the resolution strategy included the sale of the traditional portfolios of BAT and CLICCO to a suitable purchaser at prices consistent with independent valuation, the CBTT said.
“Following a transparent, competitive and rigorous bidding process conducted by CLICO/BAT with Central Bank oversight, Sagicor was selected as the preferred purchaser. Agreements for the transfer of their respective traditional insurance portfolios to Sagicor were executed…by CLICO and BAT,” it said in the statement.
Claire Gomez-Miller, CLICO’s Executive Chairman and BAT’s Chairman, added that Sagicor emerged “as the preferred buyer in an open and very competitive tender process with guidance from independent global industry experts”.
In announcing the deal, Sagicor Group President & CEO, Dodridge Miller said the company was pleased to welcome the policyholders to the Sagicor family, and he sought to assure them “of the same level of protection and service that our existing policyholders enjoy upon the completion”.
The CBTT said that in accordance with the Insurance Act Chap. 84:01, Schemes of Transfer are required before the sale can be completed, and Sagicor will prepare the Schemes of Transfer in respect of the CLICO and BAT policies for regulatory approvals.
The entire transfer process is anticipated to take several months during which time CLICO and BAT will continue to administer their respective portfolios until the Schemes of Transfer are confirmed.
The Central Bank said that consistent with the objectives of the resolution strategy, the intended transfer of the traditional insurance portfolios to Sagicor is aimed at “safeguarding policyholders’ interests and assuring continued financial stability in Trinidad and Tobago”.