TWO insurance giants, one in Bermuda and the other in Trinidad and Tobago have signed a partnership agreement that is expected to generate significant growth opportunities for both insurers.
Beacon Insurance has divested a part of its assets in the Bermuda-based Colonial Group International. The Colonial Group which has commercial operations in Bermuda, the Cayman Island, British Virgin Islands, the Turks and Caicos Islands, has acquired a minority interest in Trinidad and Tobago’s fourth largest insurer, The Beacon Insurance Company Ltd. The partnership agreement was signed last Monday and is subject to regulatory approval by the Central Bank.
This contract is expected to generate significant growth opportunities for both insurers, as it will provide Colonial with access to additional Eastern Caribbean markets in countries where Beacon is licenced to operate. Among them, Trinidad and Tobago, Grenada, St Vincent, St Lucia, Dominica, Barbados, St Kitts and Nevis - expanding its presence to 12 jurisdictions across the Caribbean region and diversifying its risk profile.
On the other hand, Beacon will be able to leverage Colonial’s support to strengthen its product offerings in health and introduce new and innovative products related to its Life and Pension services portfolio. In the statement Colonial’s CEO Naz Farrow said the agreement was a perfect symmetry for the two insurance groups.
“We are thrilled to partner with Beacon. This partnership will bring together complementary qualities that will strengthen product lines and expand and deepen our market presence.” Farrow said Colonial is particularly keen to be working with Beacon’s strong and experienced management group which has demonstrated over decades its ability to build a successful business by putting people first. He said that is the same approach Colonial is noted for.
Gerald Hadeed, Beacon’s CEO, noting the similarity in the business cultures of the two companies said they were delighted to continue serving their clients and grow their business through shared know-how, skills and resources they both possess. Colonial currently manages approximately US$400 million of premium and contributions each year with group shareholders equity in excess of US $270 m and manages nearly US$700m pension funds.
Beacon, founded as the Caribbean Insurance Company in 1972 and rebranded in 1996, has become a formidable regional operation, providing general insurance for individuals and institutional clients.
Beacon’s gross premiums amounted to TT$380 m, at the end of 2017, with a net shareholder equity of TT$140 M, seen as a testament that it is well-positioned to navigate the increasingly competitive industry and economic challenges within which they operate.