Game-changing insurance sale concluded

The Trinidad and Tobago-based conglomerate Massy Holdings Ltd. has agreed to sell Massy United Insurance Ltd to the Bermuda-based Coralisle Group Ltd. (CG) for US$90.5 million.

The transaction, which is subject to regulatory approval in the relevant jurisdictions, is expected to close as soon as requisite approvals are obtained.

Massy United Insurance was acquired as part of Massy Group’s acquisition of Barbados Shipping and Trading in 2008. Massy Holdings Ltd, through its subsidiary Massy (Barbados) Ltd, currently owns 100 per cent of the share capital of Massy United Insurance Ltd.

CG said in a notice that the acquisition of the insurance business will significantly expand its existing presence in the Caribbean and add 14 new markets where United operates. These are Anguilla, Antigua & Barbuda, St Kitts & Nevis, Montserrat, Dominica, St Lucia, St Vincent, Grenada, Trinidad & Tobago, Guyana, Curacao, Aruba, Jamaica and Belize.

CG and United have complementary operations in the Bahamas, Turks & Caicos, British Virgin Islands, Barbados and the Cayman Islands, with minimal overlap in their product offerings.

“More specifically, the acquisition will add a complementary suite of property and casualty insurance products to enhance CG’s core life, health and property and casualty product offerings in those locations,” CG said in its statement.

CG’s Chief Executive Officer Naz Farrow described the acquisition as a “game changer” for the company.

“We are very excited to join with the people of United Insurance in this new venture to provide customers with a full range of insurance solutions,” she said.

“We are two well-established companies whose experience, skills and product lines are well matched to meet customer needs in all circumstances. In particular, this acquisition allows us to introduce CG health, life and pension solutions to markets where United operates, building on our strengths in property and casualty insurance.

“My colleagues and I are particularly looking forward to working with a company whose people-first approach to business is underpinned by a strong record of meeting the needs of customers and employees. We found the cultural, commercial and organisational synergies of this deal to be compelling,” said Farrow.

Both companies are financially-strong with CG and United carrying AM Best ratings of A and A-, respectively. Further, a CG-United presence in 20 Caribbean markets with complementary lines of business is expected to diversify its risk profile.

CG Chairman Dr Grant Gibbons said the acquisition of United aligned perfectly with CG’s strategic objective to grow responsibly toward becoming the insurer of choice in the region.

“This acquisition will significantly strengthen CG’s presence across the Caribbean, enabling us to continue our growth and deliver insurance solutions to clients seeking comprehensive regional coverage,” he said.

In the notice, United’s Chief Executive Officer Randy Graham said his company was looking forward to working with CG.

“I see this transaction as the start of a new and exciting chapter for United’s customers and employees,” said Graham.

“Our business will expand with CG’s support and with our matching commitments to the wellbeing of our clients, this expansion will stand on the firmest footing,” he added.

For the financial year 2020, Massy United Insurance generated revenue of TT$536.8 million and profit before tax of TT$41.3 million. It held total assets of TT$2.1 billion.

For the sale agreement, RBC Capital Markets acted as financial advisor to Coralisle Group Ltd. with Carey Olsen Bermuda Limited as legal counsel while Ernst & Young Corporate Finance acted as financial advisor to Massy Barbados Ltd.

Following a decision at its February 2015 annual general meeting, Massy Holdings Ltd. voluntarily delisted from the Barbados Stock Exchange at the end of 2016. (marlonmadden@barbadostoday.bb)