Bermuda-based Coralisle Group Ltd. (CG) announced today that it has signed an agreement to acquire 100% interest in Massy United Insurance Ltd. (United) of Barbados.
The transaction, which is subject to regulatory approval in relevant jurisdictions, is expected to close as soon as requisite approvals are obtained.
The acquisition of United will significantly expand CG’s existing presence in the Caribbean and add 14 new markets where United operates, including Anguilla, Antigua & Barbuda, St. Kitts & Nevis, Montserrat, Dominica, St. Lucia, St. Vincent, Grenada, Trinidad & Tobago, Guyana, Curacao, Aruba, Jamaica and Belize.
CG and United have complementary operations in the Bahamas, Turks & Caicos, British Virgin Islands, Barbados and the Cayman Islands, with minimal overlap in their product offerings. More specifically, the acquisition will add a complementary suite of property and casualty insurance products to enhance CG’s core life, health and property and casualty product offerings in those locations.
CG Chief Executive Officer Naz Farrow described the acquisition as a ‘game changer’ for CG for its geographical dynamic and new business potential.
‘We are very excited to join with the people of United Insurance in this new venture to provide customers with a full range of insurance solutions,’ she said.
‘We are two well-established companies whose experience, skills and product lines are well matched to meet customer needs in all circumstances. In particular, this acquisition allows us to introduce CG Health, Life and Pension solutions to markets where United operates, building on its strengths in Property and Casualty insurance.’
‘My colleagues and I are particularly looking forward to working with a company whose people-first approach to business is underpinned by a strong record of meeting the needs of customers and employees. We found the cultural, commercial and organizational synergies of this deal to be compelling.’
Both companies are financially strong with CG and United carrying AM Best ratings of A and A-, respectively. Further, a CG-United presence in 20 Caribbean markets with complementary lines of business is expected to diversify its risk profile.
CG Chairman Dr. Grant Gibbons said the acquisition of United aligns perfectly with CG’s strategic objective to grow responsibly toward becoming the insurer of choice in the region.
‘This acquisition,’ he said, ‘will significantly strengthen CG’s presence across the Caribbean, enabling us to continue our growth and deliver insurance solutions to clients seeking comprehensive regional coverage.’
United’s Chief Executive Officer Randy Graham said United was looking forward to working with CG.
‘I see this transaction as the start of a new and exciting chapter for United’s customers and employees,’ he said. ‘Our business will expand with CG’s support, and with our matching commitments to the wellbeing of our clients, this expansion will stand on the firmest footing.’
RBC Capital Markets acted as financial advisor to Coralisle Group Ltd. with Carey Olsen Bermuda Limited as legal counsel. Ernst & Young Corporate Finance acted as financial advisor to Massy Barbados LTD.