Sabrina Gordon, Business Reporter
American Home Assurance Company (AHAC) has applied to the Financial Services Commission (FSC) for its general-insurance business to be transferred to a new company called Chartis Jamaica Insurance Company Limited.
AHAC, a subsidiary of the international insurance company American Insurance Group (AIG), writes property risk and casualty insurance in the Jamaican market. The company entered the Jamaican market more than 40 years ago.
Both Chartis and AHAC are subsidiaries of AIG. The American insurer has already rebranded its Bermuda operations as Chartis Bermuda Limited.
Details about the transfer of business to the new company were not forthcoming.
Earl Codling, general manager of AHAC, said back in 2009 that the Jamaican operation was going to be rebranded, but he did not return calls for comment on this current story.
The Insurance Association of Jamaica said it had no knowledge of whether Chartis would replace AHAC Jamaica. And insurance regulator FSC said it would provide no details beyond what was published in the notice. The FSC said in the advertisement that it received an application from American Home for approval of a scheme of arrangement to transfer its general-insurance business to Chartis Jamaica.
Wednesday Business was only told that since Chartis is a new insurance company, the notice was published just in case any clients had a problem with the transfer. Section 33(1) of the Insurance Act allows for 30 days to lodge objections or otherwise weigh in on the proposed scheme.
Further queries were directed to Codling.
According to Chartis' website, the company operates in the property and casualty markets but will also venture into new areas like political risk and crisis coverage as part of its commercial offerings.
AHAC at year end December 2011 reported gross premium of J$1.4 billion, a marginal increase over the J$1.3 billion it recorded in the previous year. Net premium earned for the year totalled J$256 million, against J$267.6 million in 2010.
An increase in administrative expenses ate into the company's underwriting profit, which was cut in half to J$56.7 million at the end of December 2011, down from J$122.9 million the previous year.
AHAC has assets totalling J$2.6 billion.