One of the largest health insurance companies in the Caribbean, the Guardian Group, is facing uncertainty at the top as its long-serving chairman and deputy chairman have been sent on an immediate three week break, with the expectation that they will be displaced shortly.
Chairman Patrick Hylton is also the president and group chief executive officer (CEO) of the Jamaica-based NCB Financial Group (NCB), which acquired just over 60% of the Trinidad-based insurer in 2019.
But Hylton was yesterday sent on vacation along with deputy Dennis Cohen by the company board led by Michael Lee-Chin, the billionaire chairman and majority shareholder of the Jamaica Stock Exchange-listed NCB.
A statement from the insurer suggested they will not be returning, while Hylton has spoken to local media about negotiating terms for an exit.
NCB announced yesterday that effective July 18 Hylton, who had headed the company for 20 years and his deputy of 19 years Dennis Cohen, had by agreement proceeded onto vacation leave for three weeks.
“During this period, it is expected that other arrangements will be made for the carrying out of their roles on an interim and then permanent basis,” NCB said.
Lee-Chin “will carry some executive responsibilities,” in the interim the announcement said.
The NCB site now lists Septimus ‘Bob’ Blake as CEO.
Jamaica financial sector concerns
The shake-up comes at a time when there has been significant concern over the safety of the financial sector in Jamaica, following the closure of a security broker called Stocks and Securities Ltd (SSL).
Global sprint star Usain Bolt was one of the customers directly affected by fraud, when his US$12.7m investment appeared to have been stolen.
As a result, the central bank of Jamaica has tried to calm fears about this new development.
“Bank of Jamaica (BOJ) acknowledges that corporate developments of this nature can give rise to concern among members of the public in Jamaica and overseas,” the central bank said in a statement yesterday.
“Bank of Jamaica uses this opportunity to give the assurance that the member companies of the NCB Financial Group are profitable, strong, safe, and sound and possess sufficient capital and liquidity, which are above regulatory requirements,” it said.
The end result appears to be that the Guardian Group is currently without a chairman, until a new one is appointed in the future.
Ian Chinapoo, who was appointed CEO of Guardian Holdings late last year, remains in office.
Dividends and shares
The apparent move to replace Hylton and Cohen did not come as a complete surprise to many observers.
Lee-Chin, who was himself on leave until cutting that short over the weekend, signalled last week that he was “unhappy” with how NCB was being managed, as it had not distributed any dividends since 2021, despite making profit.
As a result, Lee-Chin told the Jamaica Observer: “I am not happy because I have had to be selling assets to meet my expenses.”
Earlier this year, Lee-Chin reportedly sold his super yacht for more than US$360m. It was also reported in local media that he sold a US$10m block of 22 million shares earlier last month, and then another block later in the month.
Guardian Holdings Limited (GHL) is the parent company for a Caribbean integrated financial services group known as Guardian Group, and is a part of the National Commercial Bank Financial Group (NCBFG) of Jamaica.
The company made a profit of about US$150m last year and has a focus on life, health, property and casualty insurance, pensions, and asset management.
It currently serves markets in 21 countries across the English and Dutch Caribbean, including Trinidad & Tobago, Barbados, Jamaica, Curacao, Aruba, St. Maarten, and Bonaire.