NAGICO Insurances, the largest privately owned General Insurance company in the Caribbean, has announced that definitive agreement has been reached for full acquisition by Peak Reinsurance Company Limited (Peak Re), a Hong Kong-based global reinsurer. Photo: Insurance Asia News/Nagico Insurances

Kyria Ali (left), the Interim CEO and Chief Strategy and Development Officer of Nagico Insurances, said the outlook for NAGICO Insurances is 'positive'. Franz-Josef Hahn (right), CEO of Peak Re, said NAGICO is a 'leading composite insurer operating in the Caribbean region' Photo: Peak Re/SMN News

According to information released by both NAGICO Insurances and Peak Re, Upon the completion of the transaction, subject to regulatory approval, NAGICO will become a wholly-owned subsidiary of Peak Re.

The transaction is a natural next step following Peak Re’s initial investment in NAGICO in 2016, when it acquired a 50% stake in the insurer, in line with the Company’s strategy to diversify its portfolio globally.

NAGICO customers will benefit from acquisition

The full acquisition means NAGICO will benefit from Peak Re’s expertise and its strong balance sheet, to further strengthen its capabilities and offerings to customers.

“NAGICO is a leading composite insurer operating in the Caribbean region,” said Franz-Josef Hahn, CEO of Peak Re in a separate release.

“It provides a broad range of personal and business insurance solutions. The acquisition of the remaining 50% stake in NAGICO will enhance Peak Re’s geographical and portfolio diversification,” Mr Hahn added.

Since the initial investment by Peak Re in August 2016, NAGICO Insurances pursued growth opportunities and has expanded its life operations and footprint into the Eastern Caribbean region.

On the general insurance side, Nagico Insurances has continued to prove itself as a strong, reliable, and trusted group having paid nearly $1 billion in claims following three CAT-5 Hurricanes: Irma, Maria and Dorian which devastated the region.

The Management and Board of NAGICO Insurances are excited by the development.

“The outlook for NAGICO Insurances is positive,” said Kyria Ali, Interim CEO and Chief Strategy and Development Officer.

Approximately $1.5B in equity

According to the NAGICO Insurances press statement, Ali added, “This transaction, when concluded, would result in the group being a wholly-owned subsidiary of an A.M. Best A- and Moody’s A3 rated global reinsurer with approximately $1.5 billion in equity, thereby further strengthening our profile and broadening our reach. In addition, our mutual desire to harness the power of technology and deliver exceptional service augurs well for our clients in the near term.”

Both NAGICO Insurances and Peak Re will focus now on ensuring that all the necessary requirements for regulatory approval and closing conditions are met.