Monday 3 August, 2020

Guardian Life to become insurance arm for NCB in Jamaica

NCB Financial Group has begun the process of streamlining the insurance business currently offered by its competing subsidiaries - NCB Insurance Company (NCBIC) Limited and Guardian Life.

NCB Financial Group has begun the process of streamlining the insurance business currently offered by its competing subsidiaries - NCB Insurance Company (NCBIC) Limited and Guardian Life.

The NCB Financial Group has announced its intention to merge its insurance operations with Guardian Life Limited (GLL).

The group has begun the process of streamlining the insurance business currently offered by its competing subsidiaries - NCB Insurance Company (NCBIC) Limited and Guardian Life.

In May 2019, NCB Financial finalised the acquisition of a 62 per cent shareholding in Guardian Holdings Limited, after share purchase transactions totalling US$207 million ($28 billion).

Guardian Holdings is the parent company for an integrated financial services group known as Guardian Group, which includes Guardian Life.

Commenting on the planned merger, NCB Group President and CEO, Patrick Hylton said, “We recognise that while each entity has delivered strong performance results, but having competing entities within the same group of companies has resulted in missed opportunities to collaborate and leverage economies of experience and scale that could positively benefit each entity’s customers and performance.”

NCB Financial Group President and CEO Patrick Hylton (right) and his deputy, Dennis Cohen, who also serves as the company's Chief Financial Officer.

NCB Group said that NCBIC has submitted applications to the Financial Services Commission (FSC) seeking approval for the transfer of 100 per cent of the company’s portfolio of insurance and annuities business to Guardian Life.

It is also seeking from the regulator permission to operate as a licensed dealer under the Securities Act and registration of NCBI 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 is contingent upon each other.

NCB/Guardian execs

The gallery shows Patrick Hylton (NCB Group President), Eric Hosin (Guardian Life's President) and Vernon James ( NCBIC CEO).

If approved, these applications will allow NCBIC to discontinue its business as an insurance underwriter, but 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.

NCB Financial said insurance policies for existing policyholders will not be impacted, as GLL will honour the contracts being transferred on its current terms.

Hylton stated in the company release, “As we adapt to doing business in the ‘new normal’, companies must take every opportunity to optimise employee and customer experiences, operating efficiency and shareholder value to maintain their viability.”

NCB is the largest financial services group in Jamaica with roots dating back to 1837. The company, chaired by Michael Lee Chin, offers insurance and long-term life investments and meets pension needs for individuals and groups in Jamaica. 

Led by Eric Hosin, who serves as president, Guardian Life is an assurance company established in Jamaica since August 1999. The company is engaged in the underwriting of all classes of long-term insurance business. Guardian’s policies are sold by employed insurance advisers and through brokers

 

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