Business

Sagicor now holds client portfolio of Alliance Investment

LoopNews

August 16, 2022 5:25 PM ET

3 mins read

Sagicor Group says its subsidiary, Sagicor Investments Jamaica Limited, has completed the purchase of the securities dealer book of business of Alliance Investment Management Limited (AIML). 

This follows the completion of the purchase of 100 per cent of the shares in Alliance Financial Services Limited (AFSL) in April 2022.

The purchase consideration includes an initial cash consideration of $2.6 billion and contingent cash consideration of up to $3.4 billion, based on specified performance criteria, it was disclosed in Sagicor’s financial report for the second quarter ended June 2022.

Total goodwill and purchased intangibles arising from the Alliance acquisition was $3.49 billion. 

Commenting on the purchase of the securities dealer book of business of Alliance Investment, Sagicor CEO Christopher Zacca said: “This client portfolio purchase expands the business of Sagicor investments, offering an opportunity to serve a wider client base.”

Zacca added that Sagicor is delighted to “welcome our clients to the Sagicor family and look forward to giving them stellar service, personalised attention, sound financial advice and diversified investment products and services to meet their investment goals.”  

Meanwhile, Sagicor said Alliance Financial is showing encouraging revenue growth in its remittance and cambio segments.

Sagicor Group, in its recent financial report, noted that the Alliance Financial acquisition represents a move into a new business segment and affords the group an opportunity to expand its product offerings to its customers. 

The company reported stable results for the six-month period, producing net profit attributable to stockholders of $6.04 billion, a 25 per cent increase over the prior year.

The individual life insurance segment continued its exceptional performance and was supported by growth
in the employee benefits and commercial banking segments.

Sagicor Group’s results were generated from total revenues of $46.88 billion, which included year-over-year growth in revenues from core operations, being net premium income, net investment income and
fee income. 

Arising from the AFSL acquisition, new business for Sagicor includes cambio, remittance, and microfinance. 

AFSL, which is now fully enabled on the international MoneyGram platform, recently entered into an agreement with Unicomer Jamaica.

The partnership allows MoneyGram customers to pick up their money transfers at Courts stores island-wide and will see Alliance’s agent network expand by almost 50 per cent.

“We are excited about this new development because it means our clients can conveniently collect their money at additional locations,” said Omar Brown, CEO of Alliance Financial Services.

“Partnering with Unicomer means that in addition to our over 52 sub-agents and five Alliance offices, these 28 Courts stores island-wide will greatly expand our network,” Brown said.