The Tribune

By NEIL HARTNELL Tribune Business Editor AN "AGGRESSIVE" St Maarten-headquartered underwriter has caused a stir in the Bahamian general insurance market after obtaining regulatory approval to write business in this nation, Tribune Business can reveal, a development that has come "as a bit of a surprise" to many in the industry. Multiple sector sources confirmed to this newspaper yesterday that the Insurance Commission of the Bahamas (ICB) has issued a licence and the relevant approvals to Netherlands Antilles General Insurance Company (NAGICO) to start writing property/casualty business in this nation, with the company set to operate from a Centreville head office address. While some industry comments may be prompted by the arrival of another competitor into an already-crowded Bahamian general insurance market, many executives described NAGICO as an "aggressive" player that was highly acquisitive, constantly seeking to expand into new territories and markets. "We've been making some inquiries about this," one Bahamas-based insurance executive told Tribune Business yesterday. "It had been rumoured for a while that NAGICO was looking to get a presence here. "They've been going back and forth with the Insurance Commission, and late last week the Commission confirmed they have been registered. They're able to write business now." The executive added that the Insurance Commission had confirmed NAGICO's registered office address as 26 East Avenue in Centreville, with their Bahamas contact person named as Bhardwaj Raghubir. Tribune Business was also told that NAGICO already has a Bahamas-based agent in the shape of Stuart Tavares, of Sandyport-based Tavares & Higgs. Imran McSood-Amjad, NAGICO's chief executive, did not return Tribune Business's phone call seeking comment yesterday, despite a message detailing the nature of the inquiry being left with his office in St Maarten. Mr Tavares was said to have been off-island when Tribune Business called yesterday, and did not return this newspaper's call seeking comment. NAGICO's own website, though, appears to a certain extent to back-up the claims that it is an aggressive insurance carrier/underwriter that is always seeking expansion opportunities into new markets. A press release on its January 2012 acquisition of Trinidad-based GTM Insurance Company quoted Mr McSood-Amjad describing the deal as being "in line with NAGICO's continued strategic expansion throughout the Caribbean as plans include expansion to 19 territories by the end of 2012". At that time, the company had a presence in 16 Caribbean markets, and the Bahamas will now make it 17. The same release also quoted NAGICO's director of finance and operations, Glenville Blake, as saying the company writes total premiums of $95 million annually, with its total assets standing at $115 million. That would mean the company, despite its pan-Caribbean presence, is still smaller than the likes of Bahamas First, even though Mr Blake said NAGICO's solvency was "300 per cent over regulatory obligations". The head of a rival Bahamas-based insurer told Tribune Business yesterday: "They [NAGICO] are known to be very aggressive. It's been a bit of a surprise to many in the insurance industry here that they've been able to get reinsurance support for the Bahamas." The senior executive based this on the relative difficulty that Bahamian general underwriters have in renewing annual reinsurance treaties at reasonable prices, given that this nation sits exposed in the hurricane belt. "We've all managed to get reinsurance support," the executive added, "but for them to go to the reinsurers and get capacity has been a bit of a surprise for some people. "They've been very aggressive and want to grow very quickly. They just want to expand a lot. People perceive value as size. It's size sparking all these things. There's no doubt they have big plans, but compared to us they're quite small - on shareholders' equity they're half our size." Another leading Bahamian insurance industry executive, speaking on condition of anonymity, said of NAGICO: "People are very concerned, because they are known to be very aggressive when they go into a market. It's going to be an interesting situation. Everyone's sitting back and waiting." The executive said he understood NAGICO's efforts to establish itself in the Bahamas were being led by the chairman of its supervisory Board, Michael Bishop.