The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamas First Holdings’ agency business is “getting close to 50 per cent” of the general insurance group’s total Bahamian revenues, its chief executive yesterday telling Tribune Business this share would receive another boost from the latest acquisition.

Patrick Ward, who is also Bahamas First’s president, said the purchase of Bethel-Thompson Agency’s insurance portfolio would further boost the group’s NUA Insurance Agents and Brokers arm, taking its annual premium income to between $45-$50 million.

Confirming that Bahamas First would continue to look for agent/broker acquisition opportunities in a market expected to consolidate, Mr Ward said Bethel-Thompson’s book of business was a natural fit with NUA’s existing portfolio.

Bethel-Thompson had only been writing policies issued by Bahamas First, and Mr Ward told Tribune Business: “In this particular case, we had a long-term understanding with the principals of the Bethel-Thompson agency that whenever they decided to exit the business, we’d effectively be the first port of call.

“This is an example of a scenario where the principals operating this agency wanted to exit the marketplace, and we had a relationship with them, because they’ve been exclusive agents of Bahamas First for a long time, going back to the 1980s.

“The easiest way to absorb it into the current portfolio we have is for it to become part of NUA agencies.”

Promising that Bethel-Thompson clients would see “as seamless a transition as possible”, with its existing Shirley Street office set to close today and the portfolio being transferred to NUA with effect from Monday, Mr Ward said the latter would take on three of the agency’s former staff.

Only Bethel-Thompson’s principals and one staff member were unlikely to come over to NUA.

Anticipating no problems in obtaining regulatory approval for the move from the Insurance Commission, Mr Ward added: “I’m pretty sure we’ve got a letter from them by now approving the deal. I know we’ve already sat down with the regulator and got some preliminary nods.”

Warren Rolle, NUA’s principal, was said to be out of office when Tribune Business called seeking comment on the move.

However, Mr Ward confirmed that Bahamas First’s agency business - which all comes under the NUA umbrella - was becoming an increasing contributor to the group’s overall performance.

“It’s sizeable,” he told Tribune Business of NUA. “It’s certainly going to be between $45 million and $50 million on an annual basis.

“All the group’s agencies are based under the NUA banner, and it’s getting close to 50 per cent of the gross revenues in the Bahamas.”

Explaining that confidentiality clauses prevented Bahamas First from disclosing the Bethel-Thompson purchase price, Mr Ward indicated the company remained in agency-acquiring mode if the right prospects came along.

“As the marketplace continues to consolidate because of the factors driving it, the number one issue being the regulatory changes, other opportunities are likely to emerge,” Mr Ward told Tribune Business.

“If the opportunities are right as a fit for the Bahamas First Group, we’ll take a look at anything or any opportunities.”