The Life of Jamaica building in New Kingston. - Ian Allen/Staffphotographer

Financial conglomerate Life of Jamaica, has proclaimed itself the country's leading insurance provider and pensions fund manager, backed by new data released at its annual general meeting Thursday.

In the category of group health insurance, LOJ was the dominant player, controlling 55 per cent of the market, well ahead of traditional rival, Blue Cross which controls 34 per cent of the market, followed by Guardian Life with 11 per cent.

"Blue Cross has gotten amazingly small since Medecus entered into the market and pushed hard at Blue Cross' expense," an industry source told Financial Gleaner yesterday.

"Essentially, a lot of companies moved around with the fallout so you have a case where Guardian went from zero to 11 per cent in one year after it bought Medecus from Grace," said the source who requested anonymity.

Similarly, in group life insurance, LOJ held on to 52 per cent of the market, compared to its main competitor, Guardian Life with 17 per cent and the indigenous Cuna Mutual, whose primary customers are credit union members, with 32 per cent.

"There has been a big shift in the past couple years, in LOJ's favour, which can be attributed to Byles' management of the company," noted the source.

Insurance premium up 44%

LOJ's group net insurance premium was up 44 per cent, to $5.2 billion for its 2006 financial year ended December 31.

In individual life, LOJ was also dominant, albeit with less than half the market share - 42 per cent.

Guardian Life, controlled 23 per cent of the industry.

Both Scotia Life and NCB Insurance - two relatively small players owned by the country's two richest banks- each controlled 18 per cent.

LOJ's revenues from individual net life premium climbed 20 per cent to $3.9 billion. Together, both individual and group insurance were responsible for two-thirds of LOJ's net income.

With total funds under management of $42 billion - which excludes segregated funds - LOJ controlled 32 per cent, compared to traditional rivals, WITCO which has a 31 per cent market share.

The next two major players, Grace and Guardian each accounted for 10 per cent of the industry.

In the category of creditor life premium income - a form of insurance sold to financial institutions which in turn is used to secure credit extended to borrowers - LOJ was the major player with 43 per cent of the market, compared to Guardian two per cent, Scotia Life 35 per cent and Cuna Mutual 20 per cent.

Overall, the insurance company's revenues were up 14 per cent, to almost $10.6 billion with a marginal increase in net income, to just over $2 billion, which Byles noted was skewed.

"If you take out the exceptional item of $430 million last year [arising from the sale of PCFS shares to Sagicor] our net profit is up $2.5 billion," he said.

ashford.meikle@gleanerjm.com