General Accident acquires majority shares in Trinidadian company
Published:Wednesday | September 18, 2019 | 12:18 AM
General Accident Insurance Company Jamaica Limited has acquired a 55 per cent stake in Trinidadian motor insurance company, Motor One Insurance.
The deal, which was announced on Monday, also saw Micon Marketing Limited – a Trinidadian company that previously formed part of the Musson Group of Companies – acquiring the remaining 45 per cent of shares in Motor One.
Motor One Insurance Company Limited, formerly B&L Insurance, is headquartered in Port of Spain. The transaction has received the approval of the Financial Services Commission in Jamaica and a letter of no objection from the Central Bank of Trinidad and Tobago. Robert Mowser, an experienced Trinidadian insurance executive, has been appointed as Motor One’s chief executive officer.
General Accident’s acquisition of majority shares in Motor One marks the insurance company’s first business venture outside of Jamaica. According to chairman of the Musson Group of Companies Paul B. Scott, the acquisition is an important first step in General Accident’s wider regional growth strategy, which the company believes will increase its economies of scale, spread risk, and significantly enhance shareholder value.
The decision to acquire Motor One Insurance comes at a time when General Accident is reporting double-digit increases in quarterly profits. Up to June 2019, the insurance company recorded after-tax profits of $135.28 million, 39.8 per cent more than the $95.44 million earned for the similar period in 2018. A quarter before that, the company raked in profit after tax of $285.4 million, a $64.2 million, or 29 per cent, improvement over its 2017 first-quarter results.
General Accident Managing Director Sharon Donaldson has attributed much of that growth to a 30 per cent increase in new business from its marketing campaign in 2018, which was targeted at a younger demographic.
Ultimately, General Accident is expected to see even greater growth in new business from its entry into Trinidad, an insurance market that, according to the Insurance Association of Jamaica and the Association of Trinidad and Tobago Insurance Companies, is over 40 per cent larger than the general insurance market in Jamaica.
“Entering the Trinidad market has long been an objective for General Accident. We look forward to working with our executive team and the local brokerage community to give Trinidadian consumers exceptional service and coverage,” said Scott, who is also chairman of General Accident.
General Accident claims 21 per cent of the general insurance market share in Jamaica as at December 2018.
Formed in 1981 as a joint venture between Musson (Jamaica) Limited and General Accident Fire and Life Assurance Corporation PLC, General Accident became a wholly owned subsidiary of Musson in 1998 but retained the General Accident brand, underwriting principles, and management philosophy. Today, its portfolio of insurance products includes auto, home, and travel.
“General Accident has strong brands, an outstanding team of professionals, and the support of the world’s leading reinsurers. We are excited to work with our talented local management team to operate in the Trinidadian market,” said Donaldson.