‘Sacos has prospered and has the potential to continue growing,’ says outgoing CEO |26 May 2015
The outgoing chief executive of the Sacos Group Ltd Antonio Lucas has said the insurance company has grown over the last decade and has the potential to continue growing.
Although it has maintained its popularity among the public, there is however a need for the firm to extend business outside Seychelles as well, as more competitors come in, Mr Lucas noted.
The announcement that Mr Lucas would step down came earlier this month. He has been working in insurance in Seychelles for the past 26 years. He was the executive chairman of the State Assurance Corporation of Seychelles before it was privatised in 2006 to become the Sacos Group Ltd.
Speaking a week after the announcement Mr Lucas, who will soon be 64, has witnessed the development and growth of Sacos over the years but how has the insurance company’s journey been?
“It has been smooth. The company went through some reorganisation after it was privatised to form the Sacos Group Ltd, the holding company which now comprises three subsidiaries: the Sacos Insurance Company which deals with short-term insurance -- motor, marine, properties, buildings…; Sacos Life Assurance Company Ltd which deals with long-term insurance – endowment , mortgage protection…; and Sun Investments which manages Sacos Group Ltd properties,” Mr Lucas explained.
He said business has increased considerably over the years and this thanks to teamwork -- with the cooperation of the board, the directors and members of staff who have all stayed with the company.
He noted that the company ensures continuous training for its employees both in- house on the job, abroad and via corespondence, adding that at present there are two employees doing their masters in insurance in the UK.
Mr Lucas said that today insurance penetration in Seychelles is the highest in Africa and among the highest in the world.
“This is in terms of the number of clients and the premiums they pay,” Mr Lucas added.
He explained that premiums have risen considerably from for instance R54 million when the company was privatised in 2006 to R99 million in 2010 and R144 million last year in terms of short-term insurance where the bulk of the business lies.
But Mr Lucas pointed out that the market itself here is small and it is difficult for the company to actually grow as it would like to.
“This is why we need to extend our business overseas as well but for that the company is still waiting for approval from the Financial Services Authority,” he said.
But Mr Lucas added that as part of its future plans, Sacos intends to continue to expand in property investments.
He noted that with other insurance companies coming in, Sacos too needs to go out and get business abroad as it is secure and has its reinsurance cover and all.
Among Sacos’ competitors, Harry Savy Insurance (HSI) is the most important as the others (MUA and Falcon) are small and have no big impact on Sacos’ growth, Mr Lucas remarked.
But what has made the company’s success? Mr Lucas said there has been growth in the market due to increasing demands for insurance covers and some intensive marketing and education making people realise they need to take an insurance.
He said the company has come a long way, has grown and will no doubt continue to grow with or without him at the helm.
But what now for the man who has been in insurance for so many years?
“My future plans are not clear yet as I’ve got a few options on which I am working. But Iwould be around and I may decide to join other investors and form a company but everything is still on the table at this stage,” Mr Lucas said.