The Trinidad and Tobago Insurance Ltd (TATIL) has completed its acquisition of Colfire, which was one of the insurance companies in the CL Financial (CLF) group.
The acquisition was done on April 6, 2023 and the value of the transaction is estimated at $320 million.
Since 2021, TATIL had been in the process of buying Colfire.
Notice of the completion was posted on the Trinidad and Tobago Stock Exchange last week.
“The compulsory acquisition process initiated on March 10, 2023 by T&T Insurance Ltd (TATIL), a wholly-owned subsidiary of ANSA Merchant Bank Ltd (AMBL), whose ultimate parent is ANSA McAL Ltd (ANSA McAL) (ANSA McAL owning 82.5 per cent of AMBL’s shares), pursuant to the provisions of Section 202 of the Companies Act, Chap. 81:01 of the laws of T&T, to acquire the remaining 2.5 per cent of Colonial Fire and General Insurance Company Limited (Colfire), representing the shareholding of the shareholders of Colfire who did not accept TATIL’s offer and take-over bid to acquire all the issued and outstanding ordinary shares of Colfire issued on December 29, 2022, was completed on 6th April, 2023,” said the notice.
TATIL is a subsidiary of publicly listed ANSA Merchant Bank, which is a subsidiary of the ANSA McAL group, which is also publicly listed on the Trinidad and Tobago Stock Exchange.
The Colonial Fire Insurance Company Ltd was incorporated in 1955 by the late Cyril Duprey.
It operated in Port-of-Spain as a small specialised company of qualified underwriters until 1968 when the company’s name was changed to Colfire to include all services in property, motor, liability, marine and other insurance lines.
In a recent interview with Guardian Media, TATIL had said, “The acquisition of Colfire by TATIL fits in with its long-term plan to grow our market share. The resources of TATIL and the ANSA McAL financial services sector would enable Colfire to better support the evolving needs of policyholders, and to remain a strong player in this competitive landscape.”
TATIL also noted the deal would work to the benefit of both companies.
“Ultimately, the acquisition will have a positive impact on the resilience of both companies and will cement TATIL’s position as a leading insurance company in the local industry,” it said.
According to the Association of T&T Insurance Companies (ATTIC) in 2018 Colfire was ranked third in the local general insurance market recording $282 million in gross written premiums.
When asked about what the deal would mean for both companies, TATIL hailed its new acquisition. “Both companies have long histories of providing property and casualty (General Insurance) protection for Trinbagonians. Colfire began operations in 1958 and, five short years later, in 1963, TATIL opened its doors. Their combined legacy of track record and experience is superior to any other in the market.”