3 months ago
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Marathon Insurance Brokers Limited is planning to expand into three Caribbean countries and says it is on track for listing on the Jamaica Stock Exchange in just over a year from now.
However, Marathon Insurance Chairman Richard Burgher said that plans could change depending on what happens with the global economy which is currently in a state of uncertainty brought on by the ongoing tariff war.
“The recently announced United States trade dynamics is a matter that is giving us pause as it will affect everybody. Once economies contract, you look at a recession and the corresponding reduction in the spending power of the consumer,” said Burgher.
“We are in the retail end of the (insurance) business which by and large caters to the individual motor driver, the individual house owner and so forth. Once people have less disposable income, typically what can happen is that instead of people insuring their vehicle comprehensively they opt for a third-party insurance, for example,” he told the Financial Gleaner.
Despite the uncertainty in the global economy, New Kingston-based Marathon Insurance is looking towards the third quarter of next year to go public via a share offering and listing on the stock market, whether on its own or as part of its parent company, Federal Capital Group.
“We have a decision to make as to whether we go (to the stock market) with the Federal Capital Group which includes our financial lending arm, Federal Capital Investment and Finance, or with the subsidiary, which is Marathon alone,” Burgher said.
He added that the IPO was mostly about ensuring that Marathon was properly prepared to enter the regional market when the time comes.
The brokerage is making “north of $4 billion in terms of premium income,” he said. The company recently added a Life, Health and Employees Benefits Division. Manager of the new division, Otis Hamilton, said the first policy was settled in May last year, and that relationships have been established with Jamaica’s top-five local and international life insurance companies.
Group President and CEO Levar Smith would take the lead on the listing project, said Burgher, who founded Marathon and retired from his executive role in mid-2023.
“The idea of the IPO is to fund the substantial technological investment that would be associated with any regional presence because we really intend to put our tent down in three regional countries. I won’t name them now, but that is really what we’re looking at. Levar Smith will be leading that particular engagement and IPO launch,” he said.
English (US) ·