BF&M ‘Disappointed’ By Camellia/Argus Sale
[Updated] “BF&M is disappointed by the announcement from Camellia that it will sell its 36.9 percent ownership interest in the Company to Argus, a direct competitor,” BF&M said.
The statement from BF&M follows after it was announced that an Argus subsidiary has entered into an agreement to purchase a 36.9% shareholding in the BF&M insurance company for $100 million,
In announcing the agreement, Argus said, “We believe that this stake is better in the hands of an accountable local community partner, rather than owned by a large overseas insurance group.We consider the investment to be an attractive proposition for our shareholders.”
In a letter to shareholders BF&M said, “As we noted in our press release earlier today, BF&M is disappointed by the announcement from Camellia that it will sell its 36.9 percent ownership interest in the Company to Argus, a direct competitor. We wanted to send you this further update to provide more context for BF&M’s position.
“Dating back to the announcement of our strategic review process, we have made great efforts to work collaboratively and constructively with Camellia to achieve a mutually beneficial arrangement.
“Our strategic review included Caribbean based insurers who do not have presence in Bermuda and a range of local strategic partners. Any of these options would have needed to have been approved by the BF&M Board of Directors as being in the best interests of the Company as a whole.
“On several occasions, we expressed our concerns about the potential adverse consequences of a sale to a direct competitor. This includes the potential impact on policyholders, the local market and employees. Unfortunately, our concerns have been ignored.
“In light of today’s announcement by Argus, the Board of BF&M Limited is now focused on protecting the interests of all stakeholders, including the 63.1% of shareholders who are not receiving an offer for their shares.
“In conclusion, the Board is prepared to assess the full implications of the transfer of the BF&M ownership stake, and to exercise our fiduciary duty to protect the interests of all our shareholders.”
Update 1.05pm: In a email sent to customers, the BF&M CEO said, “To our Valued Customers,
“I wanted to reach out to you today with an important update regarding the announcement involving BF&M’s largest shareholder, Camellia. Plc. We believe in transparency and want to ensure you have accurate information about any changes that may impact our organisation.
“Recently, BF&M’s largest shareholder disclosed intentions to sell their majority stake of 36.9% in BF&M. We must emphasize that this transaction has not been finalised and is subject to certain conditions, including the necessary regulatory and tax approvals.
“While we understand that this update may raise concerns, we want to assure you that BF&M remains financially strong and resolute in our commitment to meeting your needs. We are proud to hold an AM Best Rating of ‘A’ Excellent, which reflects our financial stability and ability to fulfill our obligations to policyholders. Our daily operations will continue without interruption, ensuring that your policies, claims, and ongoing transactions are unaffected.
“If you have any questions regarding the potential transaction, please contact us at communications@bfm.bm.
“We would like to take this opportunity to express our sincere gratitude for your continued trust and loyalty. Your support is invaluable, and we remain dedicated to serving you with the highest level of service.”
Well if this wasn’t the biggest form of skullduggery ever. Bunch of snakes. I wonder what the OBA/UBP people will say about this. Well I never…….
“BF&M is disappointed by the announcement from Camellia that it will sell its 36.9 percent ownership interest in the Company to Argus, a direct competitor”
BF&M should wear this like a badge of honour. A competitor in Bermuda has sufficient faith in BF&M that it wants to invest a substantial sum in BF&M.