Sagicor Group Jamaica Limited (SGJL), the new holding company for three of its local subsidiaries - Sagicor Investments, Sagicor Life and Sagicor Bank - is scheduled to list its shares on the Jamaica Stock Exchange (JSE) on Monday.
The company has reorganised in line with new laws being devised by the Bank of Jamaica (BOJ), which requires large financial groups with deposit-taking functions to restructure to facilitate comprehensive supervision of their businesses.
Earlier this year, the group received court approval to restructure its operations under which all companies within the group became subsidiaries of the new holding company.
The rearrangements are occurring ahead of the tabling of the Omnibus Banking legislation due by March 2014, which is meant to tighten supervision of the financial sector. The omnibus law is a condition of the four-year International Monetary Fund (IMF) loan agreement under the Extended Fund Facility with Jamaica.
Sagicor Group is now the parent of insurance company Sagicor Life Jamaica Limited, securities dealer Sagicor Investments Jamaica Limited, and commercial bank Sagicor Bank Jamaica Limited.
On Thursday, the company, in response to Financial Gleaner queries, said that Sagicor Life Jamaica (SLJ) will be delisted simultaneously with the listing of Sagicor Group, but that Sagicor Investments will remain separately listed on the JSE.
"The existing SLJ shareholders will exchange their SLJ shares for Sagicor Group Jamaica shares," the company said.
"There will be a one-for-one exchange of shares at equal value," the company said, adding that the price of the shares of the new company, Sagicor Group Jamaica Limited, will be the same as the existing SLJ shares.
Sagicor Life traded at $8.05 on the JSE yesterday with a 52-week high of $10.50.
The company has 3,760,991,782 shares, with a market value of J$30 billion.
The company noted that the reorganisation will result in a streamlined corporate structure which facilitates better capital management and accords with the new omnibus legislation.
Sagicor Jamaica commenced operations in 1970 as Life of Jamaica Limited. It was the first locally owned life insurance company and the first life insurance company to be listed on the JSE.
The insurance company was bailed out by the Jamaican Government in the 1990s during the financial sector meltdown, and subsequently sold to a Barbados outfit, Sagicor Financial Corporation.
Its name and that of other local subsidiaries were later changed to align with the brand identity of ultimate parent, Sagicor Financial Corporation.