Published On: Fri, Jan 11th, 2013

Guardian Holdings Core Strategy: Focus on Business in English and Dutch Caribbean

WILLEMSTAD – Dutch Caribbean Business reports that 0n January 9 the Trinidad and Tobago based insurer Guardian Holdings Ltd (GHL) announced its acquisition of the 100 per cent of the shareholding in Dutch Caribbean insurance company, Royal and Sun Alliance (Antilles) NV through its subsidiary Fatum Holding NV.

Through its prepared statement, GHL revealed that, upon completion of this acquisition, which is still subject to regulatory approval, the combined operations of Fatum General and Royal and Sun Alliance (Antilles) would create the largest general insurance company in the Dutch Caribbean.

“Concurrent with its acquisition of Royal and Sun Alliance (Antilles), Fatum has entered into a long-term distribution arrangement with the Maduro and Curiel banking group to distribute Fatum’s products through the bank’s branches and their insurance broker, Maduro and Curiel Insurance Services.”

Despite the ongoing global economic uncertainty, Guardian Holdings Ltd (GHL) is continuing its expansion march across the Caribbean, acquiring its second regional insurance company in as many months.

This latest acquisition follows GHL’s acquisition of Globe Insurance Company of Jamaica (Globe), which became part of the GHL group this past month. The insurance group said it intends to merge the operations of its existing Jamaican general insurance company, West Indies Alliance, with that of Globe.

“The combined entity will be the largest general insurance company in Jamaica,” read the GHL statement. The two acquisitions will add approximately US$55 million in annual new revenue for the GHL group and both purchases are expected to be accretive to the group’s earnings.

“These moves, when combined with the GHL subsidiary, Guardian General Insurance Company, will bolster its position as operating the largest indigenous general insurance franchise in the Caribbean, serving 21 markets across the Caribbean region. GHL already owns and operates the largest life operation in the region, through its subsidiaries Guardian Life of the Caribbean, Guardian Life Ltd, and Fatum Life and Health.

GHL stated that its core strategy over the last four years has been to focus on its business in the English and Dutch Caribbean, and divest itself of those investments which created a drag on earnings and returns to shareholders.

“We have successfully achieved this and are now aggressively seeking out the growth opportunities, both organically and inorganically, which exist within our markets, and which fit our business model. “The idea is to deliver consistent and steadily growing income while building value for shareholders. These two acquisitions fit very well into our strategy,” stated GHL.

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