NCB Financial Group announced the commencement of the streamlining of the group’s insurance portfolio. The move is in keeping with one of the rationales for acquisitions, to maximize returns from combining two or more entities.
NCB Financial Head Quarters in Kingston
According to NCB “in a bid to strengthen its Jamaican insurance portfolio and optimise its product and service offerings and customer experience, NCB Financial Group has begun the process of streamlining the insurance business currently offered by its competing subsidiaries – NCB Insurance Company and Guardian Life”.
NCB Insurance made applications to the Financial Services Commission seeking approval for the transfer of NCB Insurance of insurance and annuities business portfolio to Guardian Life and for the NCB Insurance to become licensed dealer under the Securities Act and to be registered as an insurance agent under the Insurance Act.
The submission also indicates that the application for approval of transfer of business and the application for registration as an insurance agent are contingent upon each other. If approved, these applications will allow NCBIC to discontinue its business as an insurance underwriter, retain and continue to operate its business as a Pension Fund Administrator and Investment Manager, while selling insurance products as an exclusive agent of Guardian Life under a new company name.
Other areas that investors can look forward to for cost-cutting will be in administrative costs, marketing, while the merger of the investing arms locally and overseas will bring enormous benefits.
Of the 600 million shares on offer, 270 million units are set aside for the general public. 115 million shares each are earmarked for NCB Insurance Company and NCB Capital Markets. Shareholders of Jamaican Teas and KIW International on record on 16 September 2019 can buy up 45 million shares at $1.25 each per share. Directors of the group and customers have 55 million units set aside at varying prices.
