ICBL sold to Paynes Bay finance

The Insurance Corporation of Barbados (ICBL) has been sold by its majority shareowner BF&M in Bermuda, but the terms of the deal have not been disclosed.

The announcement that 51 per cent stake in ICBL had been sold to Paynes Bay Finance, was confirmed by BF&M chairman John Wight in an interview with The Royal Gazette newspaper in Bermuda and in filings with the regulators in that country.

ICBL has been dogged by a scandal that involved two of its former senior executives and former International Business Minister Donville Inniss who was recently convicted of money laundering and bribery charges in the United States.

In a statement Wight, who has been ICBL’s chairman for several years, said: “I can confirm that we have entered into an agreement to sell BF&M Limited’s 51 per cent share of the Barbados-based Insurance Corporation of Barbados Limited to Paynes Bay Finance Inc.

“The BF&M Group has decided that by moving forward with our remaining wholly-owned, cross-jurisdictional subsidiaries, we are better positioned to execute on our long-term strategy. With ICBL’s management and staff, and PBF as the new majority shareholder, the company is in great hands. We wish the very best to all at ICBL.”

BF&M bought the majority stake in ICBL in 2005 for almost US$26 million when the Government sought to divest some of its investments in state corporations. Wight, who is also BF&M’s chairman and chief executive officer, described ICBL as an “excellent investment that had run its course over the past 15 years”.

Hinting that BF&M was not happy with its Barbados investment, Wight told the Bermuda newspaper: “We feel the capital could be better utilised pursuing other opportunities in other jurisdictions that we’re more comfortable with.”

Asked where the money might be put to work, Wight said: “We tend to do more business in the northern Caribbean than in the south.

“Cayman is a perfect location for us, with a growing economy and growing population, and one in which we are continuing to expand in more lines of business through our Island Heritage brand.”

He added that BF&M’s 51 per cent ownership share had sometimes made ICBL company decisions difficult.

In a statement, Wight said: “The BF&M Group has decided that by moving forward with our remaining wholly-owned, cross-jurisdictional subsidiaries, we are better positioned to execute on our long-term strategy.

“With ICBL’s management and staff, and PBF as the new majority shareholder, the company is in great hands. We wish the very best to all at ICBL.”

Joe Poulin, chairman of PBF said: “ICBL is a household name in Barbados, and I am honoured and privileged to join the family. I am particularly happy to bring ICBL’s ownership home from Bermuda to Barbados.

“ICBL will continue its commitment to customer experience, which has been important to me at every company where I have been involved. Barbados is well poised to survive the current challenges associated with the worldwide pandemic, and we at ICBL will be beside Bajans every step of the way, with products and services the people of Barbados have come to rely on.”

ICBL, a provider of general, life and medical insurance coverage, is listed on the Barbados Stock Exchange and last traded at $3 per share. (IMC1)