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Giants merge . . . CGI, Sun General insurance firms to ‘amalgamate’

by Marlon Madden
3 min read
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Two more insurance companies in Barbados are getting together.

In a notice to policyholders over a week ago, the Barbados-based Consumers’ Guarantee Insurance Company Ltd. (CGI), announced that it had agreed to amalgamate with Sun General Insurance Inc.

The value of the deal has not been disclosed and the agreement is subject to the approval of the Financial Services Commission (FSC) in accordance with the relevant laws of Barbados.

It is proposed that the amalgamated company will be referred to as CGI Consumers’ Guarantee Insurance Company Limited.

Should the deal be approved, the operations of the amalgamated company would be at the CGI Tower in Warrens and the directors and shareholders of the amalgamated company “shall be the existing directors and shareholders of CGI Consumers’ Guarantee Insurance Company Ltd”, the notice said.

“The Amalgamation Agreement governs the corporate structure of the proposed amalgamated company. As such, the terms of the Amalgamation Agreement do not affect the operation of the businesses of the amalgamating companies on or after amalgamation,” CGI said in its notice to policyholders dated December 5, 2019.

“On the proposed amalgamation of CGI and Sun there shall be no transfer of any contract by an insurer to another company,” the notice said. Any changes made to the articles and by-laws of CGI and Sun and to the Board of Directors of the proposed amalgamation would affect the rights of the shareholders of the combined companies and not the policyholders.

CGI is among the largest auto insurance providers in Barbados as per annual premium income.

Sun General, which is owned by businessman Bernard Weatherhead, has operations in Barbados, Antigua and Barbuda, St Lucia, St Vincent and the Grenadines and Anguilla.

The property of each amalgamating company would become the property of the amalgamated company, it said.

The company said there were no reasonable grounds for believing that a creditor or policyholder of either of the companies will be prejudiced by the amalgamation.

“All terms of the insurance contracts issued by CGI and Sun therefore shall remain the same on the amalgamation of CGI and Sun.

“There are reasonable grounds for believing that each amalgamating company will be able to pay its liabilities when they become due and the realisable value of the amalgamated company’s assets will not be less than the aggregate of its liabilities and stated capital of all classes,” it said.

On Monday, Ansa McAl ( Barbados Limited) announced that it had purchased the shares of Trident Insurance Company Limited. President and CEO of Trident Insurance Algernon Algie Leacock said the resources of the ANSA McAL conglomerate would enable Trident Insurance “to better support the evolving needs of our policyholders”, and to remain a strong player in this fast-paced and aggressive financial environment”.

The over 39-year-old Trident Insurance Company offers a range of products including property, motor, travel, liability and marine insurance. marlonmadden@barbadostoday.bb

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