Sagicor eyes Central America

With Sagicor Life Jamaica Limited (SLJ), apparently on the hunt for new business, has signed a joint-venture agreement with Capital and Advice Limited, an investment services company based in Costa Rica, to explore insurance business in the Central American region.

In a Jamaica Stock Exchange market report yesterday, Sagicor reported that the joint venture agreement between the two companies was signed on February 2.

Company executives were, however, not immediately able to provide further details on the arrangement.

"No further information is available, we are in early stages of discussion and so are not able to say anything more," said Tanya Miller, vice-president, group marketing at SLJ.

But the stock filing reports that under the terms of the agreement, SLJ will be providing technical expertise, administrative services and operating systems to support the joint venture set-up.

Sagicor, a company with total assets of $140.37 billion on its balance sheet, just last year existed the Cayman market, selling its 75 per cent interest in Sagicor General to Bahamas First Holdings Limited.

But in recent times, the local insurance giant has seen a drop in revenues and net profit.

For the third quarter ended September 30, 2010 net profit declined by seven per cent, while the year-to-date outcome was 17 per cent below the figure recorded for the corresponding period in 2009.

Year-to-date revenues were also down nine per cent, impacted by lower interest rates and unrealised exchange losses.

But the amount of business that this venture will bring in for Sagicor was not ascertained.

In the meantime though, Capital and Advice Limited, with its banking experience and other financial services and commercial operations, it was reported, will provide marketing expertise and other local support to the venture.

The agreement is still pending regulatory approval in both jurisdictions.