LIFE OF Jamaica Limited (LoJ) and First Life Insurance Company Limited (First Life), have concluded an agreement concerning the transfer of First Life's business to LoJ.First Life has submitted a Scheme of Transfer to the Financial Services Commission (FSC) seeking approval.
The agreements call for First Life to transfer to LoJ its entire insurance business consisting of its ordinary life insurance and health insurance portfolios, group life and pension business with LoJ assuming all policyholders liabilities. In addition, First Life will transfer to LoJ control of its 38 per cent interest in Pan Caribbean Financial Services Limited (PCFS). Conclusion of this part of the agreement is subject to Bank of Jamaica's assessment and positive recommendation to the Minister of Finance.
In return, First Life will receive as payment, a block of LoJ ordinary stock units amounting to approximately 31 per cent of LoJ's ordinary share capital. First Life has agreed to renounce approximately six per cent of these shares to Sagicor in exchange for Sagicor shares valued at US$13.4 million.
Independent valuations of LoJ, First Life and PCFS were carried out by PricewaterhouseCoopers.
Additionally, Standard and Poor's Corporate Value Consulting has been asked to render a fairness opinion regarding the transaction.
On conclusion of the transaction, First Life will be entitled to nominate three persons for appointment to LoJ's board of directors. The names of the nominees will be announced at a later date.
When completed, First Life will hold the following assets:
(a) 25 per cent of LoJ's ordinary share capital;
(b) Sagicor shares valued at US$13.4 million
(c) 100 per cent of Jamaica Property Company Limited;
LEADING COMPANIES
Jamaica Property Company Limited is one of Jamaica's leading real estate holding companies with shareholder's equity of J$1.5 billion. It currently owns and manages prime commercial real estate in the city including the Pan Caribbean, the Tourist Board and the IBM buildings on Knutsford Boulevard, the Manor Park Shopping Centre and a substantial part of the Scotiabank head office building downtown.
Completion of the transaction will reinforce LoJ's position as the largest life insurance company in Jamaica with ownership of a substantial shareholding in PCFS, Jamaica's leading licensed financial institution.
