GraceKennedy has retreated from the health insurance market with the sale of its 50 per cent stake in the joint venture company, Medecus Health Insurance Agency, to its partner Guardian Life, only one year after entering the market.

GraceKennedy notified the Jamaica Stock Exchange (JSE) on Friday that it would sell its stake in the health insurance provider to Guardian Life.

According to the statement, "a review of the strategic objectives of GraceKennedy and Guardian Life going forward, GraceKennedy has decided to offer for sale to Guardian Life, its 50 per cent interest in the joint venture company, Medecus Health Insurance Agency, and Guardian Life accepted this offer."

The effective date of sale will be June 19, 2006.
Guardian Life had renamed one of its subsidiaries - Platinum Insurance Agency - to form Medecus in early 2005, and subsequently sold 50 per cent shareholdings to Grace effective June 1, 2005.

According to Guardian Holdings Limited's 2005 annual report, Medecus captured "a seven per cent market share" by December 31, 2005.

Also, Guardian Life's audited financial results showed Medecus as owning $82 million in assets and $142 million in liabilities as at December 31, 2005, having lost $31 million from $42 million in income during the seven months.

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