Following an initial announcement by the Central Bank of Trinidad & Tobago a week ago, on Monday Sept. 30, Alignvest Acquisition II Corporation said on Monday Oct. 7 that its wholly-owned subsidiary Sagicor Financial Corporation Ltd., through its subsidiary Sagicor Life Inc., entered into agreements to acquire the traditional insurance portfolios of both Colonial Life Insurance Company (Trinidad) Ltd. (CLICO), and British American Insurance Company (Trinidad) Ltd. (BAT).
Both Clico and BAT were previously part of the failed CL Financial group and was taken over by the Central Bank of Trinidad and Tobago following the collapse of that group in 2009 and later bailed out by the government.
Alignvest said in a press release that approximately US$1.2 billion of total investment assets are proposed to be acquired to offset a similar amount of actuarial liabilities which are expected to be assumed.
The insurance policies assumed will consist of a combination of ordinary long-term life insurance policies, including universal life, whole life and term life policies and annuities, plus group life, health and creditor insurance policies in effect as at closing. Certain pension-related liabilities of CLICO will also be assumed at closing.
The completion of the transactions contemplated in the acquisition agreements is subject to a number of conditions, and there could be no assurance that either or both of the transactions will be completed, Alignvest said.
Alignvest Acquisition II Corporation is a special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purposes of effecting a qualifying acquisition. AQY’s registered office is located in Toronto.
Meanwhile, the Central Bank of Bank of Trinidad & Tobago’s choice of Sagicor Life as its preferred bidder, could end up in court. According to the Trinidad Express, while the central bank insisted that Sagicor was chosen after a “transparent, competitive and rigorous bidding process,” that process was almost immediately challenged by legal action commenced by Maritime Life, the other shortlisted bidder for the CLICO and BAT traditional portfolios.
Maritime’s British attorney, Edward Fitzgerald QC, wrote a 20-page letter to Central Bank Governor Alvin Hilaire accusing the bank of acting “irrationally, unfairly and unconstitutionally” by excluding Maritime’s bid for the CLICO/BAT assets, said the Express.
Maritime is proposing to bring a judicial review action against the central bank’s decision.
Maritime said it wants the bank “to quash the decision to prefer Sagicor’s bid and to defer any further decisions in this matter...until the matter has been determined by the courts.”
Sagicor Group president and CEO Dodridge Miller, in the media release, said, “We are pleased to welcome the policyholders to the Sagicor family and assure them of the same level of protection and service that our existing policyholders enjoy upon the completion.”