GlobalCapital divests broking portfolio to MIB

As part of its strategy to focus on its core insurance business GlobalCapital plc is exiting the insurance broking market as a result of GlobalCapital Insurance Brokers (GCIB) divesting of its broking portfolio in favour of Mediterranean Insurance Brokers (MIB). This portfolio disposal will allow GlobalCapital to strengthen its market position after announcing its best results in five years at the AGM last month. This key move expands MIB's portfolio while ensuring uninterrupted service for all GlobalCapital Insurance Broker's clients.

MIB, the renowned independent insurance intermediary, aims to broaden its business through the portfolio acquisition, subject to any necessary regulatory approval, and will be servicing GCIB's insurance broking clients with effect from 1st October 2013. This portfolio transition secures MIB's position as market leaders in the local insurance brokerage sector.

"We believe this move will prove to be an asset to our customers, as well as extremely positive for GCIB's existing clients; this will be a seamless move for them," MIB's Rob van Ojian said. "In this sector, the bigger you are, the stronger the support you can invest in your clients, with better potential service and insurance cover for your customers."

GlobalCapital plc is continuing to pursue its long-term strategy to meet its value proposition to customers, distribution partners and shareholders.

GlobalCapital Life Insurance now enjoys over 7 per cent market share of Malta's regular premium business and the embedded value of its life insurance business is now well in excess of €13 million signaling a return to operational strength and encouraging prospects for its key life insurance and health insurance businesses.

GlobalCapital Group CEO Bashar Khatib said: "We have been in discussions to divest this insurance broking portfolio while seeking to ensure that our insurance broking clients continue to receive the best of service. We are very pleased to have reached agreement with such a respected institution as MIB and are confident that this is in the best interest of our broking clients.

"We also look forward to further collaboration with MIB in the future. In the insurance sector we are now focused on the organic growth of our life and health insurance divisions and are dedicating significant efforts in this regard. GlobalCapital has in place the people, products, distribution platforms and improved operational efficiency to take this business forward and to create value to our clients, stakeholders and shareholders."

As the independent broking arm of the MIB Insurance Group, MIB has a history of handling Malta's most complex and extensive insurance programmes by offering the right balance of local expertise and international professional standards and resources. With over 35 years of success and a dedicated team of professionally-qualified insurance experts, the company is renowned for handling all lines of insurance cover, claims administration and Risk Management Consulting, giving its clients the deserved holistic solution in the protection of their assets.

"With that in mind, growth has long been a very important feature within MIB's strategy," Mr van Oyian continues. "So, when this opportunity presented itself, we were keen to act on it. We believe it will continue to fortify our core market and reinforce our niche offering of tailor-made products for both commercial and corporate clients, as well as highlight our attention to detail across the board."