Durrant Pate/Contributor

Key Insurance Company Limited has submitted a formal application to the Jamaica Stock Exchange (JSE) requesting the voluntary delisting of its ordinary shares, pursuant to Rule 411B of the main market rules. 

The delisting application follows the completion of the take-over offer made by GraceKennedy Financial Group (GKFG), which increased its shareholding in the insurance subsidiary to over 98 per cent of the company’s total issued share capital. As a result, the remaining public float of Key Insurance’s shares is now below the minimum threshold required for continued listing on the JSE Main Market.

The company has requested that the delisting be made effective on November 30, or such other date as may be agreed upon with the JSE.

In a regulatory filing, Key Insurance advised, “further announcements regarding the application and the effective date of delisting will be made to the market in due course, following correspondence and determination by the JSE.”

Key Insurance was incorporated in November 1982 as a general insurance company with registered offices at 6C Half Way Tree Road with branches in Kingston, Portmore, May Pen, Ocho Rios, Montego Bay and Mandeville. It faced a number of financial challenges up to 2020 when it was taken over by GKFG such as  heavy losses, increased claim expenses due to a surge in local road accidents in Jamaica.

In addition, Key Insurance needed a rights issue to shore up its finances with GKFG infusing much capital to help stabilize its financial standing in the general insurer.  This move was part of GraceKennedy’s strategy to expand its financial services and strengthen its presence in the insurance market. 

Leadership change

In the meantime, Key’s recently departed general manager, Tammara Glaves-Hucey is now back at the company but in a new capacity as company director. She was recruited by the parent company as of October 1, to serve as head of general insurance business at GraceKennedy (GKFG). 

In her new role, Glaves-Hucey is overseeing Key Insurance, GK General Insurance Company and GK Insurance Eastern Caribbean Limited, bringing all of GK’s general insurance operations under a single leadership. Andrew Dunkley was promoted to the role of assistant general manager at Key Insurance.