Colfire insurance company up for sale

Colonial Fire and General Insurance Company (CFGIC) has announced the divestment of 92.24 per cent of the shareholdings held by parent company, CL Financial Ltd. This effectively puts CFGIC, more well-known as Colfire, up for sale.

The company which provides property and casualty insurance in motor vehicles, property, casualty and marine advertised its sale on Wednesday.

Its website said, “The divestment of CFGIC will be structured as the sale of CL Financial Limited’s 94.24 per cent shareholding on an as is where is basis. Offers will only be considered for the 94.24 per cent shareholding of CFGIC.”

The company boasts of over 85,000 customers and it has described itself as “one of the top non-life insurance businesses in the market with a large customer base, high retention ates and an extensive network of agents throughout the country.”

It noted that bids and more information about the sale can be found on its website https://cficlsale.com

According to the Association of TT Insurance Companies (ATTIC) 2019 report, Colfire ranked third with in 2018 with $282 million non-life insurance market. It also held a 17 per cent piece of the local motor insurance pie.

Its property market share was seven per cent and according to ATTIC loss ratios in 2018 increased to a high with Colfire reporting loss ratios in excess of 70 per cent.

Overall, it ranked fourth in 2018, with a total asset at $309 million.

In 2019, the Caribbean Information and Credit Rating Service (CariCHRIS) gave Colfire a stable outlook a fourth consecutive corporate credit rating of CariA in foreign and local currency ratings on the regional rating scale, and ttA on the TT national scale.

In 2009, the Central Bank took emergency control of Clico when the parent conglomerate, CL Financial, approached the State for a bailout. Clico has been listed as one of the assets to be sold off to repay that $28 billion debt.