Massy Holdings exits insurance business
AS the group continues to rationalise itself from a conglomerate of companies to investment portfolio management, Massy Holdings Limited has announced the sale of its Massy United Insurance Limited (MUI) subsidiary to Bermuda-based Coralisle Group Limited for US$90.5 million ($13.67 billion).
Massy is a Trinidad-based conglomerate with numerous business operations across the Caribbean. Since 2018 the company has been focused on supporting its autonomous business portfolios in the areas of integrated retail, motors & machines and gas products. This has seen it dispose of various subsidiaries, with its latest announcement being on MUI which comprises the property and casualty insurance business line under its financial services segment.
“Massy United Insurance was acquired as part of the Massy Group’s acquisition of Barbados Shipping and Trading in 2008. Massy Holdings Limited, through its subsidiary Massy (Barbados) Limited, currently owns 100 per cent of the share capital of Massy United Insurance Limited, a registered entity in Barbados whose principal activity is the provision of property and casualty insurance products and services in the Caribbean,” stated the press release.
MUI operates in 20 territories across the English- and Dutch-speaking Caribbean. It got approval to operate its insurance business in Jamaica in December 2018, and that has gotten off to a solid start since then. It generated $1.22 billion in gross premiums and $89.55 million in net profit for its 2020 financial year (FY) ending December 31. MUI reported 22 per cent improvement in gross written premiums to BBD$358.02 million (TTD $536.8 million) for the 2020 FY ending September 30. It generated a consolidated net profit of BBD$11.65 million ($868.7 million), had total assets of BBD$625.96 million ($46.68 billion) and equity of BBD$135.96 million ($10.14 billion). MUI has an A- (Excellent) rating by the AM Best rating agency.
The Coralisle Group is a set of companies which provide regional insurance and pension fund management across the Caribbean region. It has equity in excess of BMD$285 million ($42.89 billion) with premium income well above BMD$370 million ($55.69 billion) and pension assets under management of BMD$800 million ($120.40 billion). Some of the countries it operates in include The Bahamas, Barbados, Bermuda, the British Virgin Islands and the Cayman Islands. The deal is still subject to regulatory approval despite a share purchase agreement being signed on September 2.
Massy recently sold its 50.5 per cent stake in Roberts Manufacturing Limited to PROVEN Investments Limited for US$21.45 million. It also disposed of Massy Technologies to PBS Technology Group Limited for TT$341.63 million. Massy Gas Products (Jamaica) Limited recently announced its decision to build out a facility to store and distribute medical oxygen across the island.
These deals all come near the end of Massy’s 2021 FY, which closes at the end of this month, and just ahead of its January 2022 cross-listing to the Jamaica Stock Exchange. The bid was won by a joint interest of First Citizens Investment Services Limited (FCIS) and Barita Investments Limited.
— David Rose