Latin America push
Sagicor takes aim at regional market with investment arm
SAGICOR Group Jamaica, a key player in the life insurance sector, is strategically positioning itself for further growth by expanding its focus on the investment business in Latin America. Alongside its ongoing insurance growth plans, the company is actively developing Sagicor Investments Cayman, which has been operational for a year.
“We want Cayman to grow and be a regional powerhouse along with Sagicor Jamaica, so it’s like twins moving forward to grow in the Caribbean,” said President and CEO Christopher Zacca in an interview with the
Jamaica Observer.
Sagicor anticipates significant developments from its investment bank in Cayman and its new life insurance venture in Panama, acknowledging that building out these operations will take time.
“Last year, we made close to US$50 million in new investments through Sagicor Investments Cayman. In life insurance, Sagicor holds more than half of the Cayman market, 60-70 per cent, but in investments, we are relatively small, competing against major global companies from investment houses. We expect to be a more significant player as we continue to grow,” revealed Zacca.
The company aims to strengthen its reach across the Caribbean for investment banking deals. Despite its current dominance in the life insurance sector, Sagicor remains proactive, turning its attention to the Latin American market for further expansion. The recent acquisition of Sagicar Panama is a pivotal move in the company’s strategic growth plans for the region.
“It’s a life and health insurance company, aligning with our expertise. The plan now is to facilitate its growth and continually explore opportunities to acquire new insurance companies in Latin America,” he explained.
Zacca highlighted that while Sagicor’s life insurance business already holds the largest market share in Jamaica, the Cayman Islands, and the southern Caribbean, the company identifies the Latin American market as the real growth opportunity.
“They are underinsured; they don’t have real penetration with insurance because Latin America has been slow in adopting private insurance,” justified Zacca regarding the company’s expansion into Latin America.
Although the precise cost of the investment was not disclosed, Zacca clarified that the formula is intricate and undetermined as of the interview date. However, he disclosed an overarching Latin America strategy, including plans for the Dominican Republic, in terms of insurance.
Sagicor’s unit trust management, particularly the Sigma funds, commands a significant share, approximately 33 per cent, of the entire Jamaican market. In Latin America, Sagicor Costa Rica achieved the highest return on equity in the industry last year, while Sagicor Life Cayman leads in life insurance in the Cayman Islands.
Digitalisation emerges as a crucial growth strategy for Sagicor, with plans to fully digitise the entire company within a three- to five-year roadmap.
“Our investment banking business, to grow, necessitates playing in that space,” Zacca told the
Caribbean Business Report as an additional factor for its digital transformation.
Addressing concerns about the shift from clients, Zacca assured that it would not be a one-pronged solution, but would allow the option to interchange between traditional and digital modes.
“We are not slaves to digital; we are promising our clients an omni-channel experience. So, if you prefer digital, you can go digital; if you prefer coming to a branch or having an agent visit you at your yard, we will have every channel for our clients,” he said.
Efficiency gains from digitalisation, along with a focus on reskilling and upskilling, are anticipated to contribute to the company’s overall growth. While specific targets were not disclosed in the interview, Zacca emphasised that this approach should enhance the efficiency of service.