GraceKennedy to Acquire Another Scotia Operation | Local company

GRACEKENNEDY announced that it has reached an agreement with The Bank of Nova Scotia to acquire 100% of Scotia Insurance Caribbean Ltd (SICL), with the associated transaction subject to regulatory approvals and other customary closing conditions.
GraceKennedy is currently listed on the T&T and Jamaica exchanges.
In a stock market notice released on Tuesday, the Jamaican conglomerate said SICL is a licensed life insurance company, which provides credit protection to customers on personal loans, home mortgages, personal lines of credit, cards personal credit and small business.
SICL currently operates in Barbados, Belize, British Virgin Islands, Cayman Islands and Turks and Caicos Islands.
The announcement comes exactly one year after its acquisition of another Bank of Nova Scotia subsidiary, Scotia Insurance Eastern Caribbean Ltd (SIECL), in August 2021. This acquisition was later rebranded as GK Life Insurance Eastern Caribbean Limited (GK Life).
Commenting on the proposed acquisition, GraceKennedy Group CEO Don Wehby said: “The acquisition of SICL is another step in achieving our strategy to grow GraceKennedy’s insurance business in the Caribbean as we continue to expand our financial group’s footprint in the region. .
“Along with the acquisition of SIECL last year, the addition of SICL and the five territories where it operates will mean that we have expanded GraceKennedy’s life insurance business to a total of 13 markets in less than two year.
“Mergers and acquisitions (M&A) continue to be a key strategic driver of growth for our group, as we move towards achieving our 2030 vision. Our M&A unit is in discussion regarding M&A transactions locally and internationally, and we look forward to what the future holds.
Steven Whittingham, Deputy Managing Director of GK Financial Group, with direct responsibility for the insurance segment, said: “Since 2019, we have steadily strengthened GK’s presence in the insurance market. The segment continues to benefit from our recent acquisitions, including Key Insurance in 2020 and SIECL in 2021.
“In 2019, we also entered into a joint venture partnership with Musson Jamaica to launch Canopy Insurance. We look forward to further developing GraceKennedy’s life insurance business with the addition of SICL and serving our customers in these new markets. We are well positioned to establish GK as a leading pan-Caribbean insurer.
SICL will be the newest member of GraceKennedy Financial Group, which includes GK Life Insurance Eastern Caribbean Limited, GK General Insurance, Key Insurance, Canopy Insurance, Allied Insurance Brokers, GK Insurance Eastern Caribbean, GraceKennedy Remittance Services, GraceKennedy Money Services Group, GK Management of capital and First Global Bank.
In its fiscal year ended December 31, 2021, GraceKennedy achieved revenue of J$129.3 billion, an increase of 12% from its revenue of J$115.4 billion in 2020.
The conglomerate’s after-tax profit was J$8.9 billion for the 2021 financial year, compared to J$6.8 billion in 2020, an increase of 30.4%.
GraceKennedy is organized into two operating divisions, GK Foods and GK Financial Group. In its 2021 fiscal year, the food division generated 78.7% of its revenue and 46.5% of its pre-tax profit.