Dave Morrison has been elevated to the role of chief executive officer (CEO) of Advantage General Insurance Company Limited (AGIC) following the departure of former CEO Mark Thompson.

Morrison’s appointment took place on December 1, over a year after he was appointed deputy CEO in September 2023. Morrison previously served as AGIC’s vice-president of finance/chief financial officer from 2019 up until he was made acting CEO following Thompson’s resignation on October 31. Morrison previously served as AGIC’s CFO between 2008 to 2013 before spending a six-year stint as CFO of Rubis Energy Jamaica Limited.

“Mr Morrison comes with a keen vision to build on the strong legacy Advantage General has established over the years. We look forward to his leadership continuing to position AGIC as the digital insurer of choice,” said Christopher Zacca, president and CEO of Sagicor Group Jamaica Limited (SJ). SJ owns 60 per cent of AGIC through Phoenix Equity Holdings Limited, which is a wholly owned subsidiary of Sagicor Investments Jamaica Limited (SIJL).

Thompson’s resignation came after he spent nearly two decades leading the company after becoming CEO in July 2007. AIC (Barbados) Limited acquired an 85 per cent stake in AGIC, formerly United General Insurance Company Limited, in 2006 from Neville Blythe’s UGI Group Limited before it was sold in February 2013 to NCB Capital Markets Limited (NCBCM) for $3.20 billion (US$34 million). NCBCM then sold AGIC in September 2019 for US$50.50 million ($6.80 billion) to Phoenix Equity Holdings, Fundy Bay Equity Holdings Limited (FBEH), a holding company for Thompson and Resource in Motion Limited (RIM), a holding company for Donovan Lewis. FBEH acquired 34 per cent while RIM received a six per cent stake. NCBCM received a $3.05-billion dividend before the sale of AGIC.

Sagicor Investments had funded that acquisition by tapping $4.40 billion in debt with $2.22 billion repaid in September 2020 and the other $2.18 billion repaid in August 2024. Phoenix Equity paid $4.14 billion for its 60 per cent stake in AGIC.

Fundy Bay, a St Lucian international business company (IBC), was formed in May 2019 and issued three classes of preference shares and an 8.50 per cent bond due in 2024. Fundy Bay’s purchase price would have been equivalent to US$17.17 million ($2.31 billion). It issued a $1.672-billion bond to the Sigma Bond, Sigma Real Growth and Sigma Income unit trusts, a $200-million class A preference share with a 6.00 per cent interest rate due 2020 to the Sigma Income unit trust, a $300-million class B preference share with a 6.75 per cent interest rate due 2021 to Sigma Real Growth unit trust and a $500-million class C preference share with a 8.00 per cent interest rate due 2022 to the Sigma Real Growth unit trust.

AGIC paid a $628.88-million dividend in 2020, a $1.65-billion dividend in 2021 and a $197.30-million dividend in 2023. Phoenix Equity Holdings would have received $1.49 billion, Fundy Bay would have received $841.90 million, and RIM would have received $148.57 million. AGIC did not pay a dividend in 2022 and has not paid a dividend in 2024 based on Sagicor Group Jamaica’s unaudited quarterly reports.

When the Jamaica Observer asked Sagicor boss Zacca at a November 14 media briefing on the status of Fund Bay Equity Holdings Limited, he noted that a subsequent update would have been provided to the public in short order. Thompson resigned from all Sagicor affiliated boards with his resignation and is the second board member to resign this year after John “Mitchie” Bell. The AGIC board is now composed of six directors with Sagicor executives Zacca, Mark Chisholm and Andre Ho Lung making up half of the body.

AGIC was reputed to be the largest motor insurer in Jamaica at one point. It was listed as the fourth largest general insurer in 2018 by gross premiums written with a 12 per cent market share out of the 12 general insurers in Jamaica based on a Fair Trading Commission (FTC) report.

AGIC’s 2023 audited financials showed that its insurance revenue improved 19 per cent to from a restated $6.95 billion to $8.29 billion. The net investment income and insurance result line grew 15 per cent to $1.11 billion as the company earned more interest income during the period. However, due to a 30 per cent jump in operating expenses to $514.10 million, the company’s net profit marginally moved from $405.71 million to $415.34 million.

AGIC’s asset base jumped 14 per cent from a restated $9.63 billion to $11.02 billion with financial investments of $6.52 billion and $445.45 million. Total liabilities and shareholders’ equity was $6.76 billion and $4.26 billion, respectively.

The company previously operated its head office from 4-6 Trafalgar Road but sold that investment property and several others before moving to 70-72 Lady Musgrave Road, the former home of Main Event Entertainment Group Limited, in May 2022. AGIC also operates from 18 -18 1/2 Belmont Road, former home of Fujitsu Caribbean, which is directly across from Alliance Financial Services Limited, a wholly owned subsidiary of Sagicor Group Jamaica.

This is the latest major development in the general insurance sector. The Insurance Company of the West Indies (ICWI) was the victim of a ransomware attack in August where 3.6 terabytes (TB) of data was stolen.

There was also recent announcement that JN General Insurance Company Limited, the sixth largest general insurer, would be sold to an ICD Holdings related company and that it would become an insurance agency. ICD Holdings is the largest owner in British Caribbean Insurance Company Limited (BCIC), which is the largest general insurer alongside General Accident Insurance Company Jamaica Limited (Genac).

Genac’s shareholders approved several resolutions at its November 6 annual general meeting (AGM). One of these resolutions was to increase the maximum board size to 15 seats, a move that opens up four new seats for potential directors with regional experience and exposure to join the board lead by Chairman Paul B Scott. Shareholders also approved the increase in the company’s authorised share capital and authorisation to issue redeemable preference shares, a move which acts as a precursor to a potential acquisition of another general insurer. Genac operates in Jamaica, Trinidad & Tobago and Barbados and has expressed an interest to grow further in the Eastern Caribbean.

According to the Financial Services Commission (FSC) data for June 2024, the general insurance sector saw a 20 per cent rise in insurance revenue from $35.2 billion to $42.2 billion largely due to an increase in property insurance. The net insurance result only doubled from $0.8 billion to $1.7 billion while there was a 14 per cent improvement in profits before tax from $1.4 billion to $1.6 billion. However, net profits were flat at $1 billion.

The sectors assets grew year on year by nine per cent from $89.1 billion to $96.9 billion. Total liabilities rose by nine per cent to $60.3 billion with shareholder’s equity/capital rising eight per cent to $36.7 billion.