Business
Newsday Reporter
Tatil Insurance has made a bid to acquire Colonial Fire and General Insurance Company (Colfire), which was put up for sale in March.
In a published legal notice, Ansa Merchant Bank – Tatil’s parent company – said Tatil was making a takeover bid for 100 per cent of Colfire’s shareholdings.
The notice said a sale (lock-up) agreement was made with CL Financial – Colfire’s parent company, on two conditions.
CL Financial has agreed to deposit 92.24 per cent of its shareholdings but the takeover bid would proceed only after minority shareholders exercised an option to purchase the shares. Also, all regulatory approvals and third party consent must be given and on terms acceptable to Tatil.
In March, it was announced that CL Financial will divest its ownership, representing a 92.24 per cent shareholding, in Colfire which provides property and casualty insurance in motor vehicles, property, casualty and marine.
On Colfire’s website, at the time, it said offers would only be considered for the 94.24 per cent shareholding.
The company said it had over 85,000 customers and described itself as “one of the top non-life insurance businesses in the market with a large customer base, high retention ates and an extensive network of agents throughout the country.”
According to the Association of TT Insurance Companies (ATTIC) 2019 report, Colfire ranked third in 2018 with $282 million non-life insurance market. It also held a 17 per cent piece of the local motor insurance pie.
Its property market share was seven per cent and according to ATTIC loss ratios in 2018 increased to a high with Colfire reporting loss ratios in excess of 70 per cent.
Overall, it ranked fourth in 2018, with a total asset at $309 million.
In 2019, the Caribbean Information and Credit Rating Service (Caricris) gave Colfire a stable outlook a fourth consecutive corporate credit rating of CariA in foreign and local currency ratings on the regional rating scale, and ttA on the TT national scale.
In 2009, the Central Bank took emergency control of Clico and its subsidiaries, among them Colfire, when CL Financial, approached the State for a bailout. Clico has been listed as one of the assets to be sold off to repay that $28 billion debt.
