Bermudan insurer stretching across Caribbean with new acquisition
HAMILTON, Bermuda, Tuesday April 10, 2012 – BF&M Limited has once again set its sights on Caribbean expansion with the acquisition of Cayman-based Island Heritage Insurance Company Ltd, which has insurance operations in several Caribbean islands.
Seven years after its first attempt at branching out across the Caribbean with its acquisition of the Insurance Corporation of Barbados Ltd, BF&M has entered into a share purchase agreement with Flagstone Reinsurance Holdings to take control of Island Heritage, which also has operations in Barbados. Island Heritage also has licensed agents in Anguilla, Antigua, Bahamas, the British Virgin Islands, Dominica, Grenada, St Kitts and Nevis, St Lucia, St Maarten, St Vincent and the Grenadines, the Turks and Caicos, and the US Virgin Islands.
BF&M will acquire the Island Heritage for approximately US$68 million in cash. Flagstone Re currently owns an approximate 60% interest in Island Heritage and expects to receive about US$40.8 million in cash from the sale.
The transaction is expected to be completed before the end of the second quarter of 2012, subject to the regulatory approvals and other closing conditions.
President and chief executive officer of BF&M John Wight said of the takeover: “We are proud to be announcing the acquisition of a market leader in the Caribbean. It is BF&M’s strategy to enhance our footprint in the Caribbean region. The acquisition by BF&M of Island Heritage is part of the company’s strategic goal of becoming a major insurer in the Caribbean region.”
David Brown, Flagstone’s CEO, stated: “The sale of Island Heritage, coupled with the planned divestment of our Lloyd’s operations, further enables us to streamline our core businesses as we continue to execute on our strategic path forward. Once these transactions are complete, we can renew our focus on leveraging our existing strengths in order to deliver enhanced value for our shareholders.”