Avia Collinder, Business Reporter
Sagicor Jamaica has expanded its arrangement with Citi Jamaica, which will now provide the insurance group and its subsidiaries with fund administration and treasury services.
Sagicor declined comment on the expected savings but said it would not affect jobs or the structure of the group.
Citi already provides funds reporting and accounting services for Sagicor Life Jamaica and its subsidiary Sagicor Life Cayman.
The new outsourcing agreement covers both on and off-balance sheet assets of the group, but does not extend to management of the assets, according to Sagicor's Chief Financial Officer Ivan Carter.
"Nothing is new about what Citi is doing for us. It's just an increase in assets," said Carter.
"In 2013, we are now providing them with the securities of the Sagicor Investments Group."
The arrangement covers insurance company Sagicor Jamaica, unit trust Sagicor Sigma Funds, securities dealer Sagicor Investments Jamaica, and commercial bank Sagicor Bank Jamaica's proprietary assets.
"The strategy is to cost effectively leverage the systems and capabilities of Citi in the specified areas," Carter told Wednesday Business.
Citi also provides custodian services to the Sagicor group of companies, which means it buys and holds securities on their behalf.
Sagicor first tapped the services of Citi Jamaica three years ago. The insurance group underwent "significant structural changes" then and expects no displacements from the expanded arrangement with Citi now, Carter said.
Citi's history in Jamaica extends to 1960. It began as a commercial bank with up to eight branches, but eventually shrunk to one branch focused primarily on corporate banking services to clients across the private and public sectors.
The bank is a subsidiary of the US$14-trillion Citigroup. It's managed by Country Officer Peter Moses.
Sagicor Jamaica began in 1970 as Life of Jamaica. The group oversees total assets of J$309 billion of which approximately J$125 billion are managed funds. Its on-balance sheet assets topped J$184 billion in June.
"We are pleased to help Sagicor become more efficient and expand their business by leveraging our global scale and operational expertise," Moses said in the release announcing the new agreement.