U.S. Economy could impact Caribbean Insurance Sector

TAMPA – As the U.S. dollar slides in value in relation to other global currencies, the cost of goods and services will increase and put further pressure on companies whose financial reserves are traditionally backed by the U.S. dollar.

That’s the word from Sagicor Life USA President, Ken Marshall. Marshall this week said this vicious financial cycle will no doubt have a negative effect on some financial service companies in the Caribbean.

However, he is confident that the strength and geographic diversity of Sagicor Financial Corporation, the parent of Sagicor Life U.S.A., will see it again weathering these turbulent economic times as it has successfully done during its 168-year history having been established in 1840 as a Mutual Society.

Although S.L.I.C. is virtually a start up organization in the U.S. market, it has a clearly defined strategy and a detailed marketing plan carefully crafted to ensure its combined growth and profitability. This plan will see the recruitment of career as well as Independent Agents and Brokers through who the Sagicor message will be delivered to its target market, namely Middle America in addition to the Caribbean and Hispanic American households.

Marshall indicated that the tendency in tough economic times was for people to either postpone the purchase or to actually abandon life insurance contracts in order to maintain lifestyles acquired in better times. He, however, cautioned that in these difficult times families needed more than ever the security of life insurance policies that promise to pay what the Breadwinner promised to save in the event of his/her early demise on disability.

Turning to the product portfolios Sagicor Life U.S.A. is offering to prospective policyholders, Marshall indicated it was made up of periodic as well as Single Premium Life Insurance and Annuity Contracts. Some of these products also had available Chronic Illness as well as Return of Premium Riders, which increased both their attraction and competitiveness.
Signaling that the provision of excellent service to its agents and clients was the way that Sagicor intended to differentiate itself from other companies, Marshall issued an invitation to prospective agents to identify with the Sagicor Brand so that they could once again experience the feeling of doing business with a company that really cares for all of its clients and associates.

Sagicor Life Insurance Company (Sagicor Life USA) is licensed in 44 states and the District of Columbia, a licensed reinsurer in 45 states and DC and a third- party administrator in all 50 US states.

Sagicor Life USA administers more than $2.2 billion of in-force insurance business and managing approximately $475 million in assets but remains committed to offering customers, world-class service with integrity and value. And the company is giving back with the sponsorship of the athletics department of the University of Florida.

Sagicor Financial has emerged from a private company to a public company – the largest held by shareholders across the Caribbean and the only Caribbean company to list on the London Stock Exchange. Established in 1840, Sagicor’s insurance operations are dominant in most of the countries in which it operates. Based on its strong core earnings, profitability and more than adequate levels of risk- based capital, Sagicor’s Caribbean operations have been consistently rated “A” Excellent by AM Best.

In 2006, Standard and Poor’s assigned Sagicor a “BBB+” counter party credit and financial strength. Total Group assets stand today at approximately $3.1 billion with capital and surplus of approximately $500 million. Sagicor’s balance sheet continues to exemplify prudence and the capacity to support future expansion programs. Sagicor will continue to seek out growth opportunities through acquisitions and strategic partnerships to expand geographically.

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