General Accident to list on junior market
Published:Friday | September 2, 2011 | 12:00 AM
General Accident Insurance Company Jamaica Limited is going public after 30 years of operation.
The insurer hopes to raise J$400 million to J$425 million of equity on the junior stock market through an initial public offering of 20 per cent of the company, which is owned by the Musson Jamaica conglomerate.
The date of the offer was not disclosed. The float will be arranged by Mayberry Investment Limited.
General Accident said the funds raised would be used to strengthen regulatory capital and finance growth plans.
"We are hoping to have greater capital capacity to write more profitable business," said managing director Sharon Donaldson.
Donaldson said General Accident, whose biggest contributor to premium income is non-motor, controls eight per cent of the general insurance market.
"We believe that the company's key strengths include its reputation, claims service, deep customer relationships, strategic partnerships with key business originators and reinsurers, and its ability to maintain some of the lowest loss and expense ratios of its local industry peers," said Paul Scott, chairman of General Accident and chief executive officer of the Musson Group in a company-issued statement.
General Accident will become the 12th listing on the JSE Junior Exchange, assuming successful take-up of the offer. The junior market is now capitalised at J$16 billion.