05 May Sagicor to acquire Alliance Investments securities book
SAGICOR Investments Jamaica Limited (SIJL) has entered into a definitive agreement to purchase the securities dealer book of business from Alliance Investment Management Limited (AIML) which is expected to be completed within the next two months subject to due diligence.
According to the balancecareers.com, the book of business refers to list of clients maintained by someone who provides specialised professional services, such as financial services. This book has a defined value as it represents the past, present and future income from the client base. AIML is a licensed securities dealer that offers asset management, securities trading and financial advisory services. The company’s last publicly available financials showed net profit in 2016 of $99.35 million up 16 per cent over 2015 despite total income declining by one per cent to $417.68 million. Its total asset base had increased by 11 per cent to $6.87 billion with total liabilities at $5.90 billion comprising largely of $4.84 billion in repurchase agreements. Its shareholders equity was $965.57 million with a return on equity of 10.29 per cent.
“This latest acquisition of the AIML book of business will further expand SIJL’s client base and allow us to offer the best possible service and investment returns to our new investment clients. Over the next few weeks, SIJL will be working with AIML’s clients to jointly agree to seamlessly transition their investments to SIJ,” said president and chief executive officer (CEO) of Sagicor Group Jamaica Limited Christopher Zacca in an e-mail with the Jamaica Observer.
Sagicor Group recently completed the 100 per cent acquisition of affiliate Alliance Financial Services Limited (AFSL) from principals Peter and Robert Chin. AFSL was formed in January 2004 to take over the cambio business of AIML. AFSL’s licence and operations were suspended by the Bank of Jamaica (BOJ) from December 3 to March 23 after both Chins, AIML and Alliance Finance Limited were all charged for breaches of the BOJ Act, Banking Services Act (BSA) and Proceeds of Crime Act (POCA). Alliance Finance was eventually fined $21 million related to the breach of the Banking Services Act and $50,000 related to the BOJ Act by the Kingston and St Andrew Parish Court. Individual charges were dropped against the Chins in a plea deal with the prosecution.
While both Chins were not criminally prosecuted, they will have to return to the Supreme Court on May 27 for a benefits hearing related to the possible derivatives from breaching the law. They will also return to the parish court on May 20 for the POCA breaches surrounding the failure to file threshhold transaction reports related to AIML.
The transaction is expected to further bolster SIJL’s business, which has $226.72 billion in assets under management at the end of 2021. SIJL’s net profit rose by 37 per cent to a record $3.80 billion in 2021 with total assets and shareholders equity closing at $116.57 billion and $19.71 billion, respectively. Sagicor Group earned $17.40 billion in net profit attributable to shareholders in 2021 on $102.56 billion across its various business lines. Sagicor Group offers commercial banking, investment banking, life, health and general insurance, pension fund management and now remittances following the AFSL acquisition. Sagicor Group should publish its first quarter financials by May 15.
“Growth in our businesses provides opportunities for personal growth to our team members and so we expect continued positive impacts for us. Under the leadership of the new CEO Omar Brown and the AFSL team, in the three weeks, so far AFSL has performed creditably, as we build back a business that was shut down for four months. In particular the sub agents have been very supportive and great performers. We are constantly seeking opportunities for our group,” Zacca closed.