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Sagicor to Move Head Office from Barbados in Response to Credit Rating Downgrades

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“Sagicor Financial Corporation (SFC) the parent company of the regional financial services provider, has decided to relocate its head office out of Barbados where it has been domicile do for close to 175 years. In an exclusive interview in today’s Business Guardian, SFC president Dodridge Miller said the board decision was unanimous and the Barbados government has been informed. Trinidad, London and the U.S. are options for the new SFC head office, said Miller, who is based in Miami.” – TT Business Guardian

The news that Sagicor, one of the more respected regional companies, will shift its head office must strike at the core of economic fatigue Barbadians. It must have given Barbadian Group President Dowridge Miller no pleasure to be part of the decision that will see a 175 year relationship broken.

Barbadians were assured by the minister of finance Chris Sinckler, governor of the central bank Delisle Worrell and ardent DLP supports that the downgrades by the credit rating agencies are without ‘justification’. If the planned shift of Sagicor from Barbados does not cause a seismic reaction to a government which lacks the competence to manage the country, nothing will.

In August 2014 minister of labour Esther Byer-Suckoo assured Barbadians the unemployment fund was still ‘solid’. This week minister of finance Chris Sinckler had to respond to reports the Unemployment Fund is seriously compromised. It is time for sensible Barbadians whether B, D or Independent to raise their voices in response to the demise of our great island. This is one example of many which exposes a lack of leadership, a crisis of governance or plain ignorance.

Enough is enough!

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193 responses to “Sagicor to Move Head Office from Barbados in Response to Credit Rating Downgrades”

  1. Crusoe Avatar
    Crusoe

    The Watcher January 9, 2015 at 8:22 PM #

    A whole heap of untruths and incorrect facts. Pity some state as if they know it all, when their statements are so inaccurate.

  2. David Avatar
    David

    However we want to spin the decision of Sagicor to redomicile it is as a result of Barbados economy seen as adverse.

  3. David Avatar
    David

    Sagicor leaving will hurt in many ways, the emotional as Dowridge indicated but what about the government securities it has to hold?

  4. Caswell Franklyn Avatar
    Caswell Franklyn

    I know little about such things as changing domicile but one thing I do know is that this change will reflect negatively on Barbados and its Government. That might very well be the intention, but that is speculation on my part.

    The reasons for the move as explained by Sagicor sounds reasonable and could very well be honest, but somehow going on their history, I have little or no reason to believe them. They lied to the people when they demutualised and since then I have separated myself from them by cashing in my policy and selling the shares that they gave me as compensation. I know that the people who deceived the policy holders into demutualisation have moved on but the same mind set of white superiority and culture of lying to maintain that position are still very much part of who they are.

    Don’t get me wrong, I honestly believe that this present administration is bad for this country, and until I am satisfied to the contrary, Sagicor also holds that view and this changing domicile thing might be their way of heaping on the pressure to bring about the Government’s demise.

    If Sagicor is telling the truth, it might not be the whole truth.

    >

  5. Enuff Avatar
    Enuff

    Trinidad? Their last budget was based on $80 per barrel. Go figure.

  6. David Avatar
    David

    Will someone tell Donville he needs to stop frothing at the mouth (see back page of the Nation newspaper)? Of course Sagicor exiting hurts Barbados as far as attracting foreign entities to setup here. Also retaining what we have. He should follow the link. All of us are not stupid.

    http://www.ttonline.org/2015/01/07/barbados-woes-impact-sagicors-decision-to-relocate/

  7. Artaxerxes Avatar
    Artaxerxes

    @ old onion bags January 9, 2015 at 4:20 PM #

    “@ Minister’s Ass-is-tant: …………stupesss here comes Poncho the Donkey again…..(Go up 3 spaces and click)”

    Onions, I suggest you re-read “Minister’s Personal Assistant January 9, 2015 at 4:13 PM # ” post again.

  8. ac Avatar
    ac

    and in agreement with personnal assistant post,,ac believes wholeheartedly that despite the pain and setbacks and the never ending calls by the prophets of doom and gloom having bloated glee while sitting in the sidelines waiting to see barbados demise ,the strength of others with a determination to see barbados shine will out wit and outsmart everything that stands in barbados way towards success,
    For surely the road is not for the swift but those with a full fledged commitment to endure to the end, think on these things

  9. Bush Tea Avatar
    Bush Tea

    @ Artax
    “Onions, I suggest you re-read “Minister’s Personal Assistant January 9, 2015 at 4:13 PM # ” post again.”
    ++++++++++++++++++++++++++++
    LOL
    Do you see why Bushie does just turn on the whacker and lick up every shiite now?
    Such high level intellectual interventions as that by the personal assistant only serve to confuse Onions and ac …
    ha ha ha LOL
    ohh shiirt

  10. Bush Tea Avatar
    Bush Tea

    @ ac
    “…..the road is not for the swift but those with a full fledged commitment to endure to the end”
    +++++++++++++++++++++++++++
    Cuh-shiite ac, the road is for EVABODY….dat is why we does call dem “PUBALIC” roads…

    Bushie believes that you mean the race…

    You may be interested to know that blogging is not for the yardfowl, but for those with a little common sense and objectivity…
    Yardfowls are better placed on call-in shows – especially behind the mike…

  11. old onion bags Avatar
    old onion bags

    @Artex

    Doan get tie up man …..I saw peeps of ‘a-ddda’ submit and called in Poncho…wait Bushie ?…..So is U dat send DEM undertakers up to Cloud 99?…..real idijit U had all my neighbours out wid torch lites ……I send ee back wid a bill…TO YOU….wanna duz carry a joke two farrrrrrrrrrrrrrrrrrrr man.

  12. Gabriel Avatar
    Gabriel

    The board should consider the British Virgin Islands for relocation of Sagicor.

  13. millertheanunnaki Avatar
    millertheanunnaki

    @ Walter Blackman January 10, 2015 at 3:07 AM
    “At the end of it all, central management and control of Sagicor will officially pass from Barbados to T&T. The national psyche of Barbadians will be scarred and many will see this as another example of more Trinidadian meat being put into our Barbadian rice.”

    “Much to the chagrin of the Government of Barbados, corporate taxes to be paid by Sagicor will now be determined by the Government of T&T.”

    Now that is where it hurts the most. Loss of tax revenues, management fees and other benefits associated with the location of the mind and management of a large corporation.

    Walter, are we seeing the beginning of another CLICO? Lemon Arbor in the plantation parish of St. John seems to be the breeding ground for some of the smartest insurance executives and financial gurus ever raised in Barbados.
    Are these corporations (shareholders) getting value for the mountains of money paid to these executives? Not from what we know and ‘hear and see’ emanating from their brains, right W McM B?

  14. Pachamama Avatar
    Pachamama

    The few idiots here who posited that the fact that 57% of the shares are owned by Trinidadian interests as if that a sufficient condition for relocation, are staggering.

    Barbados has hundreds or maybe thousands of global companies headquartered here where not one share in owned by Bajans. Not one!

    Trinidad has many as well, where not one share is owned by Trinidadians.

    Indeed the headquartering decision is never necessarily based on which nationals have the majority of shares. If that were the case the corporate world would be very different and keep changing erratically in relation to headquartering.

    Those who pretend to have a commitment to notions of Caribbean unity but are willing to throw away nearly 200 hundred years of corporate culture because of recent high oil revenues are attached to nothing, but self.

    Their idiocy is predicated on the notion that other considerations are invalid. Though violence in Barbados is on the rise. We estimate that T&T is a near war zone.

    Should the feckless mis-managers at Sagicor decide to carry this company into that milieu, we guarantee that within 5 years they will again be looking for a country for their flagship.

    And we know that the Trinidadian surreptitiously sought from more than 10 years ago to buy sufficient shares and immediately started to demand the relocation.

    We say if this conspiracy could now be supported by those who should know better, the Caribbean is really lost.

    Another prediction. We are witnessing the beginning of the end of Sagicor. And this is how the end game will play out.

    We know that it is target of some global interests. They see the mismanagement. It will soon to taken over and scattered to the wind

    Well done Dodridge Miller, well done Hilary Beckles. You are highly competent ass holes

  15. ac Avatar
    ac

    Wuhloss bushite call um whatever! enough to suffice the soul of the hypocrite thatu are!which at any given time will include or exclude your tyrannical postures and positions

  16. Small bites Avatar
    Small bites

    …and the PM, Chris Sinkcler Governor of the Central Bank are trying to assure Barbadians that the Standard & Poors down grade is nothing and should be ignored…what a pathelic bunchs of nicompoops…STUPES

  17. Shareholder Avatar
    Shareholder

    Pachamama January 10, 2015 at 10:02 AM #: “…Barbados has hundreds or maybe thousands of global companies headquartered here where not one share in owned by Bajans. Not one!…”

    Or any operations conducted here and that is what Sagicor is proposing.

  18. Hants Avatar
    Hants

    David what do you think about this suggestion ? Sorry to interrupt the smoking hot topics on BU.

    “Barbados has what it takes to exploit “several emerging trends” and grow its international business and financial services sector. – See more at: http://www.nationnews.com/nationnews/news/61645/barbados-digital-edge#sthash.GqvMEsRL.dpuf

  19. David Avatar
    David

    @Hants

    Of course we have what it takes IF we improve business facilitation, IF we improve our judiciary IF…

  20. SPECTATOR Avatar
    SPECTATOR

    If I look at the many new big Mercedes driven by MP, judges and bureaucrats, it does not suprise me that Barbados is going down. The deeper the crisis the bigger their cars get.

    Barbados has too many ministries, too many judges, too many public servants, too big government buildings, too much bureaucracy, too many people milking tax-payers, too many statutes, too slow responses to business requests and not enough freedom for business to breath.

    Wake up and accept reality, that Barbados has a 50 % overhead in government posts.

  21. Shareholder Avatar
    Shareholder

    The tax impact on dividend income, from a foreign based Sagicor, to Barbados-resident shareholders should be examined. The tax rate is currently 12.5% deducted at source. If Sagicor relocates, the foreign tax withheld will presumably depend on the existence of a tax treaty between Barbados and the new jurisdiction. I think also that the current Barbados tax approach to dividends from foreign companies is to include the full amount in income and take a credit for the foreign tax paid – not sure whether CARICOM versus non-CARICOM jurisdiction matters. David, you may be able to get a tax professional to confirm or correct this.

  22. Hants Avatar
    Hants

    David wrote “Of course we have what it takes IF”

    So how about starting a post titled “BARBADOS CAN BE SAVED IF”

  23. David Avatar
    David

    @Hants

    The nut jobs we have heading ministries are clueless and do not want advice.

  24. Colonel Buggy Avatar
    Colonel Buggy

    Bush Tea January 9, 2015 at 11:10 PM #

    @ Colonel Buggy
    Is this not exactly in keeping with the owner’s other business standards?

    In any other country that is serious about its supposedly key industry, such a place would have been condemned and even bulldozed years ago….

    ……………………………………………………………………………………………
    Ironically, this is a relatively new building. Much blame must lie squarely on the shoulders of Town and Country Planning .This monstrosity should not have been granted permission in the first place.

    Not only “low class” Bajans support this establishment. Word has it that one of the leading churches in Barbados started to build a “gymnasium” type “cathedral ” next door , to cater to its occasional very large gathering of churches from across the island, and were curtailed half way through ,by Town & County planning, supposedly on the advice of the owners of Casa Grande. But would you believe , that the same snubbed church, turn around later ,and rented the Casa Grande facilities for a conference. I have it on good authority that the mother of one of the top officials at Town and Country Planning , worked as a manager at the same people’s establishment on Bay Street. So you would not see that establishment being demolished anytime soon. Word also has it that she is a not only a Goate, but a PIG, like Bizzy, supporting both political parties. Heads she wins ! Tails she wins !

  25. Prodigal Son Avatar
    Prodigal Son

    @ David January 10, 2015 at 2:04 PM #

    @Hants

    The nut jobs we have heading ministries are clueless and do not want advice……..

    I could not agree with you more.

    Sagicor is very important, God knows it is and I am concerned as I have a lot at stake there but we need to also focus on our very important NIS.

    You would be amazed what one can hear at cocktail parties. Last night I heard that this inept incompetent government is also holding on the proceeds of NIS matured investments. Word is that NIS was expecting the proceeds from such an investment, could not find what happenend to the money, when they checked with the CBB, they were referred to the liar, he soon called and said he was holding unto the funds for a short while and since then it happened a second time.

    We have to be equally as concerned for NIS. When these morons are finished licking out NIS monies…….. what would be there for the pensioners?

    Who is going to pay back this money?

    Where is it going to come from if we are not earning foreign exchange?

    How much long can we continue like this?

    Can we get anything from Justin Robinson, Esther Byer Suckoo, Dennis Kellman who seems to know everything about everything or the ac consortium?

    We are doomed!

  26. Bush Tea Avatar
    Bush Tea

    @ Prodigal son
    We are doomed!
    ++++++++++++++
    …so wait skipa…
    Bushie ain’t tell wunna so evasince?!!

  27. old onion bags Avatar
    old onion bags

    All I earing is bare talk…….Stupessss !!!! Tis Rock is only 11 x 16….site

    Is bout time to call in D Action Man…..( Brian ED.Talma) OF COURSE ! LOL

  28. Alien Avatar
    Alien

    Bush Tea January 10, 2015 at 3:48 PM #: “…so wait skipa…”

    This is similar to an expression often used by a popular politician – hopefully you are not revealing your identity.

  29. Vincent Haynes Avatar
    Vincent Haynes

    David

    Any ideas on when or if the sugar crop will start this year?

  30. David Avatar
    David

    @Vincent

    Will inquire.

  31. Prodigal Son Avatar
    Prodigal Son

    David,

    You could ask the goodly doctor.

    Wait, what has happened to the changing around of chairs on the deck of the titanic?

  32. John Hanson 1781-1782- I SERVE 1788- 1792 BARBADOES. Avatar
    John Hanson 1781-1782- I SERVE 1788- 1792 BARBADOES.

    2015 -175=1840 a slavery company , Time for them to leave Barbados ,They were doing the same thing under land fraud ,,, no clear title to the land they may be on bye bye ,

  33. Walter Blackman Avatar
    Walter Blackman

    David January 10, 2015 at 5:18 AM # Sagicor leaving will hurt in many ways, the emotional as Dowridge indicated but what about the government securities it has to hold?

    David,
    From the standpoint of liabilities, existing obligations, financial operations, existing investment portfolios etc..practically nothing will change. Going forward, Sagicor will be allowed to do business in Barbados as a foreign corporation and will be subject to the laws that govern such corporations.

  34. old onion bags Avatar
    old onion bags

    @ Prodi

    What has happened to the changing around of chairs on the deck of the titanic?

    What do you think?…. mo smoke n mirrors nuh. When groceries become scare on supermarket shelves and there is no money to buy gasoline from T&T….I hope someone will be wise enough to keep a vigil at GAIA…..maybe we might still be able to hold some fellas and demand answers as rats make good exodus from the listing ship.

  35. Hants Avatar
    Hants

    David wrote ” clueless and do not want advice”.

    Concerned BU bloggers should not stop giving advice wanted or not.

  36. David Avatar
    David

    Thanks Walter.

  37. millertheanunnaki Avatar
    millertheanunnaki

    @ Walter Blackman January 10, 2015 at 7:16 PM

    Could you please elaborate (shed more light) on the ramifications that must follow from the revised relationship between the operational arm of Sagicor Barbados and the new “offshore” holding company.

    Would Sagicor Barbados now have to find foreign exchange to pay for management fees, Head Office costs and profit remitted to the offshore parent company?

  38. David Avatar
    David

    Is Inniss’ comment appropiae or relevant? Should he have waited until the discussion abated before jumping in?

  39. Prodigal Son Avatar
    Prodigal Son

    Hants,

    People are wary of this government.

    I keep reminding everyone on BU that the Dems do not want any advice. Months after their 2008 victory with a smiling David Thompson in his seat in Parliament, a “powful” Donville Inniss got up in Parliament and boldly declared to MAM………….”We dont want to hear nothing from wunnah, any ideas wunnah got, keep to wnnuh self, wunnah had 14 years, now is we time and we gine do things we way”.

    Then last year, the lair told the BLP to put their ideas on paper, he could look at them. The most ignorant PM Barbados ever had…………said he dont want no eminent persons to advise him, he got eminent persons in his cabinet……….

    Why would anyone bother with dems, when they finished destroying Barbados, what will all of us do?

  40. old onion bags Avatar
    old onion bags

    Why would anyone bother with dems, when they finished destroying Barbados, what will all of us do?

    Finish destroying We lil Bubbadoes?……Nah I doubt Bajans would idly sit by and let that happen….Dis is we rock….when D time comes…we off loading all jettison…poppet asses too.

  41. Vincent Haynes Avatar
    Vincent Haynes

    David

    That answer is crucial,due to the closure of many Plantations,including approx 2000 acres,would you believe it that yams today at Applewaithes Pltn were selling at $40.00 a rod…….in Bim……this is no longer a laughing matter.

  42. millertheanunnaki Avatar
    millertheanunnaki

    @ Prodigal Son January 10, 2015 at 8:42 PM
    “Then last year, the lair told the BLP to put their ideas on paper, he could look at them. The most ignorant PM Barbados ever had…………said he dont want no eminent persons to advise him, he got eminent persons in his cabinet..”

    You are forgetting what the same man implied about the downgrades. Those credit rating agencies’ reports ought to be treated like garbage and thrown in the bin as he does to them. (Maybe that is what happened to the missing FBI and CLICO reports).

    It seems Sagicor has definitely not taken his advice.

    BTW, what has become of the offer made by the two British “financial arrangers (looking for finders’ fees) to MoF about floating a $2 billion bond on the international market? Has that also found its way into File 13 on the sleeping giant’s desk?

    The people no longer have any confidence in the current administration. Too many lies told and promises broken and lying in a cradle of perpetual incompetence. The current administration could do the country a huge favour and just resign. That would be a lasting monument to its legacy.
    Let the people reemploy them if the administration feel they are doing an excellent job at the wheel.

  43. Hants Avatar
    Hants

    millertheanunnaki wrote”The current administration could do the country a huge favour and just resign.”

    It would be better if the Opposition first produce a plan to govern and persuade a few ministers to join them in a no confidence motion.

    The government will not resign. They have to be forced out of office by a no confidence vote.plain and simple.

  44. Hants Avatar
    Hants

    Can any of you tell me why Sagicor bought a bank in Jamaica that RBC Canada wanted to “get rid of” ?

  45. Bush Tea Avatar
    Bush Tea

    @ Hants
    Can any of you tell me why Sagicor bought a bank in Jamaica that RBC Canada wanted to “get rid of” ?
    ++++++++++++++++++++
    What do you take us for? …mind readers?

    May be for the same reason that the UWI sports place is named for a Jamaican …? because Sir Cave told them to….

    It is becoming increasingly clear that logic does not play a major role in many of the decisions taken by Bajan “intelligentsia”….

  46. Walter Blackman Avatar
    Walter Blackman

    millertheanunnaki January 10, 2015 at 9:23 AM #
    @ Walter Blackman January 10, 2015 at 3:07 AM
    “Walter, are we seeing the beginning of another CLICO?”

    Millertheanunnaki,
    No.

    The difference between Sagicor and CLICO is as wide as the difference between night and day.
    You would have observed that Sagicor’s recent growth was achieved through the acquisition of companies, rather than through organic growth.
    From where I sit, it appears to me that Dodridge Miller’s focus was on the growth-through-acquisition process. Whilst he was “out” pursuing that objective, someone had to stay at home and manage the company’s operations. That responsibility seems to have fallen on the shoulders of Mrs. Pat Downes-Grant.

    Pursuing a strategy of growth through acquisition can have a serious effect on a company’s income statement, balance sheet, and internal operations.
    Companies don’t naturally merge seamlessly so tremendous effort has to be made to rationalize computer systems, reallocate corporate talent, streamline operations, manage risks, and eradicate duplication and wastage. I believe Sagicor is still wrestling with some of these challenges today.
    Sagico Life USA has presented its fair share of problems. At one point, the outlook for the company was negative, but it was recently upgraded to stable after the statutory operating results of the company showed improvement.
    Acquiring Sagico Life Jamaica (SLJ) represented a bold but worrisome investment in the Jamaican economy. However, Sagicor has reaped sustained favourable results from its SLJ operataions, and the overall financial situation in Jamaica seems to be improving.
    I believe the company has divested itself of its UK business.

    Despite its challenges, Sagicor has a lot going for it as a company. It is adequately capitalized, has strong brand recognition, enjoys a strong competitive market position within the Caribbean, and seems destined to receive a stream of consistent earnings from diverse sources for years to come.
    Not surprisingly, the last A.M. Best rating I saw gave Sagicor a Financial Strength Rating (FSR) of A- (Excellent), and an Issuer Credit Rating (ISR) of a-.

    Sagicor’s history cannot escape the tale of colour and class that defines the history of Barbados. From the moment black persons assumed some positions of power and authority within Sagicor, predictions of the company’s imminent collapse became audible and frequent.
    The mere fact that Sagicor is still standing today, with an excellent Financial Strength Rating from A.M. Best, is enough for us to offer this Caribbean company some words of congratulations and encouragement.

  47. millertheanunnaki Avatar
    millertheanunnaki

    @ Walter Blackman January 10, 2015 at 10:13 PM
    “The mere fact that Sagicor is still standing today, with an excellent Financial Strength Rating from A.M. Best, is enough for us to offer this Caribbean company some words of congratulations and encouragement.”

    Thanks for the comforting words and assurances to those who might have inchoate fears and negative concerns given the recent downgrade.

    But how come Sagicor is not playing a greater part in the ‘revitalization’ of the Barbados economy? An economy from which it amassed massive profits over the years to build the solid foundation it has used to catapult its regional and limited international presence.

    How come the directors are not prepared to invest in the revitalization and restructuring of the local sugar cane industry with its projected massive spin-off benefits?

    Why can’t Sagicor start with the takeover of the former CLICO plantation lands now idle and lying in bush?

  48. Artaxerxes Avatar
    Artaxerxes

    @ Bush Tea January 10, 2015 at 8:32 AM #

    “LOL: Do you see why Bushie does just turn on the whacker and lick up every shiite now?Such high level intellectual interventions as that by the personal assistant only serve to confuse Onions and ac …”

    <<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>

    Hahahahahaha………..Bushie, you right yuh…… both Onions and the ACs were confused by that post. But Onions [and I assume] is one individual, and he may be a bit slow sometimes… so we could forgive him.

    However, AC is nuff, nuff people, so at least one ah dum shoulda be able to understand what personal assistant contributed. But just like how managing the economy got the DEMS “cafuffle”, “personal assistant” got the ACs “cafuffle too.

  49. ac Avatar
    ac

    hi muh boy artexeres don/y tek yuself so serious ac got everything covered ,reallly tek ac fuh fool been throwing too many sprats and catching lots a whales

  50. Shareholder Avatar
    Shareholder

    When CIBC attempted to shift focus from basic, everyday retail banking… a lesson in risk management – strong, steady, low risk core business with manageable allocations of capital to high risk business. If you constantly drive at 100 mph, you are likely crash.

    http://www.theglobeandmail.com/report-on-business/cibc-takes-a-cautious-path-to-growth/article4365359/?page=all

    “…When Mr. McCaughey took the reins of Canada’s fifth-largest bank in 2005, he was brought in as a cleanup man whose job was to stabilize the business in a time of unprecedented turbulence. Up to that point, the bank had built itself into an ambitious financial giant under the watch of John Hunkin, an investment banker focused more on capital markets than traditional bread-and-butter retail lending. But after a string of costly and embarrassing missteps in the early 2000s – including, most notably, the $2.4-billion cost of a legal settlement concerning Enron Corp.’s massive accounting fraud – Mr. McCaughey was the man called upon to play fixer.

    Two years into the job, he hit a major bump: CIBC found itself on the losing end of massive trades involving complicated securities tied to the U.S. housing market. The multibillion-dollar writeoffs hit the bank’s reputation – and the CEO’s. Mr. McCaughey responded by buckling down, systematically changing CIBC’s risk-taking ways and transforming it into a conservative lender fixated on safe, domestic banking…”

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