JMMB finalises deal for stake in Sagicor
JMMB Group has completed the acquisition of a 22.5 per cent stake in regional insurance company Sagicor Financial.
It will allow JMMB to enter a new phase of its growth on path to doubling its earning over the medium-term, as previously disclosed.
JMMB acquired 33.2 million shares of Sagicor Financial Company Limited on December 5 for the equivalent of US$250 million. The company which will trade on the Toronto Stock Exchange was known as Sagicor Financial Corporation up to its takeover by Alignvest of Canada.
“We remain confident that, having such a stake in a regional market leader, will augur well for the future growth and financial performance of the JMMB Group. I wish to take this opportunity to express my heartfelt thanks to our team who worked tirelessly towards this successful outcome,” said JMMB Group CEO Keith Duncan in a release.
Sagicor Financial operates insurance services in the US and several Caribbean countries. It owns 49 per cent of the ordinary shareholdings of Sagicor Group Jamaica.
Alignvest raised approximately US$500 million, of which more than US$450 million will be retained on Sagicor Financial’s balance sheet to fund its growth plan, according to Alignvest in a market filing.
Sagicor has over 4,500 employees and offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, and real estate with over US$1.4 billion in annual premiums.
“When we began the process of seeking a qualifying acquisition, we were searching for a company with a strong and growing core business, an exceptional management team, attractive proprietary growth opportunities, and a way for Alignvest to add value. We are pleased to be able to say that Sagicor has exceeded our expectations along each of those dimensions,” stated Reza Satchu, managing partner of Alignvest, in a release.
Sagicor Financial will become an associated company of JMMB Group and, as part of the agreement with Alignvest, two JMMB executives – Duncan and chairman Archibald Campbell – will join the insurance company’s board.