Andrew Levy, managing director of Jamaica International Insurance Company.
A LITTLE over a year after acquiring Dyoll Insurance Company's Jamaican portfolio, the Jamaica International Insurance Company (JIIC) is reporting significant growth in the value of the business.
On March 7, 2005 JIIC acquired all of Dyoll's Jamaican policies and became responsible for all new claims on or after that date. Under the acquisition contract, JIIC issued new policies to the Dyoll policyholders to provide them with insurance cover for the motor and accident classes starting from March 7.
INCREASING VALUE
In March, the value of the business had grown from $1.420 billion in premiums and 22,262 policies, to $2.580 billion in premiums and 48,196 policies, with the company exceeding its profit target by 21.85 per cent.
General manager Grace Burnett says the company also surpassed, by two per cent, its target to retain 70 per cent of Dyoll's business.
This, she credits,m to a communication campaign aimed at establishing confidence in JIIC as an underwriter of choice, as well as retention of some key Dyoll employees.
Of the communication campaign she noted, "We did this through direct contact - visits, telephone calls, emails and letters - and advertising. Messages emphasised the GraceKennedy connection, leveraging our parent company's tradition of reliability, honesty, integrity and sound financial standing."
In January, JIIC received a B++ rating from A.M. Best Company, an internationally recognised insurance rating organisation.
The report noted that the infusion of some US$4 million by GraceKennedy to support the Dyoll portfolio acquisition had substantially improved JIIC's risk-based capital position and was 'in line with A.M. Best's expectations and its current financial strength rating".
BENEFITS
Benefits of the acquisition include a rapid portfolio and market share growth for JIIC, increased profits and increased recognition of JIIC brand locally and overseas.
The Dyoll transaction came after Dyoll was placed in receivership following the devastation wrought by Hurricane Ivan in 2004.
The insurer could not find resources to cover its policies.
