CG United presses expansion despite US$62m Melissa claims bill

Hurricane Melissa cost CG United Insurance Jamaica US$62 million in claims and pushed it to loss position, but it’s still in growth mode.

“Overall, CG United Jamaica had 209 reported claims,” Country Manager Winsome Gibbs said. “Payment to date is US$27.4 million. And when we add reserves to that, that takes us to about US$62 million.”

CG United drew on its regional network to speed up the claims process, flying in personnel from Barbados and Trinidad shortly after the storm.

“We had people out there on the road from Barbados and Trinidad,” Gibbs said.

The company settled 60 per cent of residential claims within the first 90 days after Melissa, Gibbs said. Residential settlements have since reached about 90 per cent, and roughly 80 per cent of all residential and commercial claims are resolved.

Eighty-four claims remain open. Gibbs did not break out residential and commercial files, but said many of the outstanding matters involve commercial customers and business interruption assessments, which take longer to finalise. CG United leads the underwriting on 11 of the open claims and has made interim payments in many cases.

“Most of these claims, though, customers would have gotten at least one interim payment already,” Gibbs said. “We are negotiating, we’re close to finalising, or we don’t have the final adjusters’ report as yet.”

The audited accounts also show the parent group provided a US$35-million capital support undertaking after the hurricane.

Jamaica accounts for only a small share of CG United’s wider Caribbean portfolio, which spans 21 territories – a spread Gibbs credited with insulating the group’s credit standing.

“Despite Hurricane Melissa and those hard results that you’re seeing, Jamaica is such a small fraction of the CG United portfolio,” she said. “We were still able to maintain our AM Best rating, our A+ Excellent.”

Audited financial statements show insurance contract revenue rose to J$3.61 billion from J$3.20 billion in 2024, but a surge in claims drove insurance service expenses to J$9.95 billion, producing an insurance service loss of J$5.75 billion and a comprehensive loss of J$3.86 billion for the year. Incurred claims and other insurance service expenses climbed above J$9.1 billion during 2025, against J$553 million the previous year.

The insurer has leased an additional 1,500 square feet of office space and employs 22 people locally, with staffing set to rise to about 25 in the near term. Gibbs said CG United ranks about 10th among Jamaica’s general insurance companies and aims to reach the top five or six within three to five years, targeting premium growth of about 15 per cent in 2027 and expansion in motor insurance and specialty lines.

neville.graham@gleanerjm.com