BF&M Limited will pay almost $26 million for a majority interest in the Insurance Corporation of Barbados Limited.

ICBL is the largest general insurer in Barbados providing group life, creditor life, group health, reinsurance and management of pension funds.

At December 2004, it had assets of approximately $110 million.

The deal, which will see BF&M acquire 19,887, 211 common shares or 51 percent of ICBL, came about as the Barbados Government moves to implement its policies on privatisation.

Barbados Prime Minister Owen Arthur said earlier this year that BF&M was chosen as the buyer because the Barbados government wanted ?ICB to be built out and developed rather than to be absorbed into another insurance company?.

He praised BF&M as having ?the expertise to bring product development to the ICBL, increased service for customers?.

John Wight, President & CEO of BF&M Limited, said yesterday in a statement that the acquisition is consistent with BF&M?s strategic objective to diversify geographically into selected territories and into businesses in which it has core competencies.

?This is a very exciting day for BF&M and its shareholders,? he said.

?ICBL has proven itself to be the leading underwriter of general insurance business in Barbados.

?The company has strong management and qualified staff.

?We look forward to working with our partners at ICBL and assisting them in providing the products and services to their customers to expand their business.?

As part of its agreement with the Barbados government, BF&M?s St. Lucia based subsidiary Hamilton Financial Limited will make a public offer next week to buy the remaining shares of ICBL at $2.60 a piece.

Shares of ICBL are currently trading for $3.10 on the Barbados Stock Exchange and BF&M does not expect many shareholders will take up its offer to buy at a lower price.

ICBL?s business dates back to 1978 when the government of Barbados established a wholly owned entity to provide insurance coverage to various government departments and the Barbadian public.

ICBL was incorporated in 1994 and made its initial Public Offering in 2000 to expand the ownership of the company.