In recent years, a number of major Caribbean banking entities have taken the decision to be a one-stop shop for financial services by entering the insurance industry.

The NCB Group is the majority shareholder of Guardian Holdings and now uses the brand to offer insurance services. Sagicor Financial Group has a presence in both life and general insurance.

Only last month, Scotia Group Jamaica announced that it would be making a foray into the general insurance industry.

Scotia Group Jamaica CEO Audrey Tugwell-Henry explaining this decision declared: “The driving force behind this decision is to create a one-stop financial services shop. Say for example we do a mortgage for our client, we want to have an opportunity to support the end-to-end process by offering general insurance.

“We have to satisfy the demand of our customers by handling their financial affairs as frictionless and seamlessly as possible.”

CIBC FirstCaribbean is not being drawn in but notes the moves made by some of its competitors.

Speaking virtually at a regional press conference held earlier in April, Mark St Hill, managing director of CIBC FirstCaribbean’s Retail & Business Banking, said on the matter: “At this current juncture, we have no plans to extend into the insurance space. What we do offer is an agency arrangement by which clients can access insurance and we do have that across the region. We are not an insurance carrier.

“As to our competitors going that way? All businesses are looking to expand their products, services and revenue streams. Each company would have to look at their particular circumstances and decide if that is something they want to do and whether it is within their core competency.”

Collette Delaney, CEO of CIBC FirstCaribbean Group, added: “There are many ways to provide our clients with the insurance [offerings] they are looking for. We do have agency agreements in place, so without having to go and make an acquisition or enter into insurance underwriting ourselves, I think there are other ways and partnerships we can [leverage] in order to provide our clients with the appropriate offering. There are many ways to skin a cat.”

For the quarter ending January 31, 2022, First Caribbean recorded net income of US$45.2 million, up US$14.3 million or 46 per cent from net income of US$30.9 million for the same period last year.

Adjusting for US$3.0 million of operating expenses related to the sale of five of its businesses, which it announced at the end of 2021, net income came in at US$48.2 million.