Lascelles, de Mercado and Company Ltd.(LAS) – Acquisition

The Lascelles, deMercado Group of companies has signed a contract to acquire all the issued shares in The Jamaica General Insurance Company (JGI). The agreement is subject to regulatory approval from the Financial Services Commission. Lascelles already has a significant involvement in the general insurance sector through its ownership of Globe Insurance Company of the West Indies (Globe Insurance.) The acquisition will not have any immediate impact on the operations of either firm. Existing staff will remain in place and business will continue as usual. Following a strategic review, Lascelles is convinced that the future of the Jamaican insurance sector will be greatly influenced by the impending establishment of the Caribbean Single Market and Economy (CSME). Under the CSME, it is likely that Jamaican insurance companies will face increased regional competition. Global Insurance is one of the largest underwriters of industrial and commercial property and liability insurance in Jamaica. JGI on the other hand, has concentrated on writing smaller commercial risks and business in the personal insurance market. With the acquisition of JGI, Lascelles’ Insurance Division will have Gross Written Premium in excess of $J1.4 billion and Net Premium of $650 million. Insurance related assets will exceed $J2 billion.