Nov 2013 Financial News

Guardian General expects 17% of market by year end

Nov 06, 2013

Guardian General Insurance, the company formed from the merger of West Indies Alliance (WIA) and Globe Insurance, now holds 15 per cent of the general insurance market.

"Before, we were at 12 per cent and as at June 2013 we are at 15 per cent," said Karen Bhoorasingh, the president of the insurance company. Combined gross written premium totaled $2.7 billion for the first six months of 2013.

The company anticipates expects to end the year with at least 17 per cent of the general insurance market putting it ahead, or at least on even keel with Advantage General at the number one spot.

Last November, Guardian Group, the parent company of Jamaica-based firms Guardian Life and West Indies Alliance, bought Globe Insurance for US$38 million.

Since then, much of the time has been spent putting the two insurance companies together, assessing both philosophies to come up with a best fit in terms of policy, staff and operations, according to Bhoorasingh.

The newly merged entity primarily focuses on insuring commercial property, more so than home and motor insurance.

"We will continue to focus on our commercial business, that is our strategy going forward," said Bhoorasingh. "Both companies were heavily involved in the commercial property business so that will remain."

The general insurance business is now run at 19 Dominica Drive, in New Kingston, at the office of Globe Insurance. There's also a branch in Montego Bay that services customers there as well as in Westmoreland and Ocho Rios. Following the merger, only 20 workers were made redundant, from a count of 140.

There are no plans however to expand its offices as the company believes in operating through brokers.

"Setting up new offices isn't apart of our business model, as we believe in operating through brokers, who we do 90 per cent of our underwriting business with," said Bhoorasingh.


Source:
Shamille Scott Business reporter scotts@jamaicaobserver.com
Jamaica Observer
Wednesday November 6, 2013

http://www.jamaicaobserver.com/business/Guardian-General-expects-17--of-market-by-year-end_15391502#ixzz2jswo3TSQ