An idea discussed over lunch has snowballed into a new giant in the $80 million insurance industry. This week two of Belize's bigger insurance companies, Regent and F&G, announced they were merging to create Belize's single largest insurance company. The two companies will officially become one on April 1st and today 7NEWS sat down with the CEOs to get a preview of what's to come.
Keith SwiftReporting,
The merger will create RFG, the country's largest insurance carrier controlling 40% of the insurance market, thousands of policies, and 40 employees. Why merge? Regent's Tony Flynn says bigger is simply better.
Anthony Flynn, CEO Regent Insurance Co.
"Merging with F&G to create RFG, we have a bigger footprint in the international market."
But will bigger really be better for you the customer holding a Regent or an F&G policy? They seem to think so claiming agents won't be cut and premiums won't increase.
Anthony Flynn,
"We have harmonized our premiums. We weren't very much different in the first place, it was an illusion."
Keith Swift,
And you said premiums won't increase?
Anthony Flynn,
"Correct."
Keith Swift,
Can we expect you to downsize agents in order to save costs and increase efficiency?
Anthony Flynn,
"From our point of view no."
Christopher Roe, CEO F&G Insurance Co.
"No. Basically overall arising out of the merger, we see no need for any serious downsizing. We are not looking at savings to be made as a result of reduction in cost from downsizing personnel."
And if there are any savings to be made - roe says it will go to their policyholders.
Christopher Roe,
"What we see coming, like Tony referred to earlier on, is being in a position to purchase re-insurance, volume wise, to get the benefits of that, creating savings like that, and handing that on to customers creating business like that. We think it's a win win for Belize consumers, for the insurance industry, and for our companies. This move gives the local company an ability to compete with the international companies that we see coming in, the Caribbean companies, the Central American companies that we see coming. So we will be here just at the base to be the most competitive, to provide the best service and hopefully to be able to ensure that there will always be a serious Belizean insurance company."
No dollar amount has been put on the deal but RFG will control about 40% of the $80 million industry. The RFG Insurance Group will comprise RFG Insurance Company, RFG Life, RFG Realty, and RFG International. A new headquarters is under construction on Coney Drive. The new, and for that matter first, CEO of RFG will chosen at the first board meeting.
