The Antigua and Barbuda government had announced that it will divest the State Insurance Corporation (SIC), which provides a variety of insurance services to clients in Antigua and Barbuda.

The Baldwin Spencer administration said it has signed a contract with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to take charge of the process to rid the government of the state-owned company. The IFC finances private sector investments and provides advisory services to businesses and governments in order to foster sustainable economic growth in developing countries.

The Office of the Prime Minister, it said in a statement that while SIC is a viable entity, its status as a statutory corporation particularly restricts its ability to develop its activities outside of the country.

“The corporation would benefit from the injection of capital and expertise of a reputable insurance investor in order to improve its operations and service offerings. Divestment would also enable SIC to participate in the consolidation of the insurance market expected to unfold in the Eastern Caribbean.”

An international bidding process will be launched by the government, for which reputable insurance investors are invited to express interest. All in all, the entire process is expected to last six to eight months.

The government said it anticipates significant improvements in the efficiency and quality of insurance services in Antigua and Barbuda, which will in turn support the growth of the national economy and give staff, policyholders and other interested Antiguan and Barbudan investors the opportunity to purchase shares in SIC.

The main opposition Antigua Labour Party (ALP) had previously warned that the Spencer administration would be selling off various state-enterprises as part of the conditions being imposed by the International Monetary Fund (IMF) for an agreement with St. John¹s.