Scotia eyes local insurance market

After some false starts, Scotiabank (Trinidad and Tobago) is putting the wheels in motion to enter the lucrative local insurance market. Simone Penco, senior manager, sales and marketing, Scotia-bank, confirmed this, noting though that this aspect of the bank’s operations was not new. Insurance forms part of the portfolio offered in other countries, like Jamaica, she said. “It is premature to give any further details at this point in time. However, what we can say is that as part of the ongoing strategy of Scotia, we will continue to ensure that customers benefit from the full range of financial products and services that are available internationally.” Margaret Yearwood, acting supervisor of insurance, said that Scotiabank did apply to operate an insurance business in TT, but was not willing to divulge any more information. The new insurance portfolio is expected to be headed by Gillian Poon Ting. Financial analysts expect the financial backing to come from Scotia International. Scotiabank’s local operation performed well and produced record results in 2002. According to the bank’s chairman Bruce R Birmingham, this was borne out in the strong performance ratios and being the strongest in the local banking industry. The bank was adjudged the “Best bank in the Caribbean — 2002” by Latin Finance.

Year over year, the bank’s share price rose 38.78 percent from $14.49 to $20.11, and the total dividend payout for the fiscal year stood at 64 cents per share, the largest payment made to shareholders in the history of the bank. Birmingham said Scotiabank has been well established in the Caribbean and Latin American region for over 110 years. The bank serves more than two million customers in 24 countries in the area through some 220 branches. The bank also won the prestigious award for “Best Bank in the Caribbean — 2002” from Latin Finance magazine for its excellence in customer service in the region. The bank’s wholly-owned subsidiary, Scotiatrust and Merchant Bank also had a good year. Richard Young, managing director, Scotiabank, said Scotiatrust crossed the billion dollar mark in assets in 2002. Total assets increased from $953 million in 2001 to $1.1 billion in 2002, an increase of $139 million or 14.6 percent year over year. Young said this, accompanied by decreased funding costs, provided for an increase in net profit of $15 million or 81 percent over the previous year. But, Scotiabank is not the only bank that has ventured into the insurance sector. Last year, Guardian Holdings Limited (GHL) implemented a new general insurance division under the sub-holding company, Guardian General Limited (GGL). RBTT Financial Limited is a 20 percent shareholder in GGL, which comprises of NEMWIL, Caribbean Home and West Indies Alliance (Jamaica), and has its own board of directors.