Press Room
SPEECH GIVEN BY MR. ANDREW FERGUSON, CHIEF OPERATING OFFICER, ON THE OCCASION OF OUR
50TH ANNIVERSARY CELEBRATION
On behalf of our Chairman and members of the Board let me once again extend a very warm welcome to our distinguished guests
Thank you for helping us to celebrate Maritime’s 50th Anniversary.
While Maritime may mean different things to different people- to our Clients, Maritime means commitment; to others Maritime means trust; but to everyone Maritime means Strength on Your Side.
Nova Scotia was the place of incorporation of the Maritime Life Assurance Company as well as other prominent companies like the Royal Bank of Canada, Bank of Commerce and the Bank of Nova Scotia. The Bluenose, the iconic fishing schooner that sailed the seas off the coast of Nova Scotia, was actually the logo of the Maritime Life Assurance Company. In many ways it represented the enterprise and bravery of those who faced the turbulent waves of the North Atlantic to fish for the citizens of Nova Scotia. In 1961 the Bluenose set sail for the West Indies.
At that time the decision to establish operations in Trinidad and Tobago was a direct result of the personal philosophy of the Chairman of the Board of Directors of the Maritime Life Assurance Company. Simply put his philosophy was “grow or die”. Mr. Schwartz the then Chairman of the Board was also the owner of the world famous Schwartz Mustards and Spices. And so, based on this policy decision, “grow or die,” the Bluenose made port in Trinidad, Jamaica, and other parts of the world. And as you would see it is this policy and other policy decisions throughout our history, which has guided us to where we are today.
On the eve of the independence of our twin island state, on the first working day in April 1961, The Maritime Life Assurance Company opened its doors for business in Trinidad and Tobago.
The decision to start operations here, although humble in its beginning carried with it the hopes and aspirations of the Government and people of Trinidad and Tobago that this fledgling insurance company would grow and mature like our newly independent sovereign state and find its rightful place in society.
Indeed, to tangibly support this policy position the Government of Trinidad and Tobago was one of the first shareholders of Maritime. As the nation matured and prospered, so did Maritime, one of the most outstanding performers in the insurance and financial services sector today—transforming into reality the policy objectives of the [PNM] Government of that period.
In those early years, building a life insurance company was a huge challenge and Maritime Life occupied a room not more than 1,000 sq. ft with 8 employees. Today Maritime occupies closer to 150,000 sq. ft, has over 400 highly qualified and trained dedicated employees and agents, and the Group manages over 1.6 billion in assets.
But Maritime’s success was certainly not by luck—but if it was by luck—then the harder we worked the luckier we got. Today we remember and celebrate those who dedicated themselves and have left an indelible mark on the company’s history. Let me say here that they did more than grow the company that Mr. Schwartz brought to Trinidad and Tobago. They made the company Trinbagonian. But being part of the insurance and financial services industry is much more than providing services to our clients, it is about developing a nation’s economy and corporate philanthropy.
You see, it was not uncommon prior to the localization of insurance companies and banks in the early 70’s that financial institutions sent all of their funds to London for investment-while at the same time there was an acute shortage of loanable funds for government, individuals, and locally owned companies. In fact, the Government of Trinidad and Tobago had to go to the same London market, cap in hand, and beg the Bank of England to allow them to borrow against our nationals’ savings. So one of the first policy decisions of the Government that influenced the drafting of the 1966 Insurance Act was to compel insurance companies to invest a minimum percentage of their assets in Trinidad and Tobago and by extension in the development of our economy, our citizens, and our infrastructure. Today, that policy decision eventually led to the industry investing closer to 90% of their assets in Trinidad and Tobago.
By 1982 arising out of these policy decisions the life insurance industry together with the National Insurance Board were the largest collectors of long term savings in the country. Life insurance remains the only instrument by which someone acting in good faith can create an estate of any size, be it 100,000 or 20,000,000 merely by paying the first month’s premium. The happening of that event, premature death, is unknown to most of us, and in those circumstances we need insurance to make provisions for our families. Therefore, the life insurance industry today still remains the only private industry that continues to promote long term savings and accordingly has the ability to invest in the long-term growth of our economy. The need for life insurance is there, and the savings generated should be deployed in the continual development of this country and its citizens and accordingly it is important to not forget this important policy.
And over the past 40 years Maritime Life and its management have selflessly assisted respective governments to implement policies that were in the interest of all of the citizens of Trinidad and Tobago. Let us recognize some of these nationals who grew and developed in Maritime, and who have given yeoman service to our country.
From 1972-1976, in order to provide social welfare infrastructure for all citizens, the National Insurance Board was established. Mervyn De Souza, then managing director, was appointed the first Chairman with the mandate of executing the government’s policy. Mervyn De Souza, during the period 1976-1981 served as Minister in the Ministry of Finance responsible for monetary policy under the Minister of Finance and our first Prime Minister Dr. Eric Williams.
During the period 1986 to 1991, as part of its fiscal policy, the Government embarked on a major tax reform strategy. The Tax Reform Commission was established with representatives of Business, Labour and Government. Steve Ferguson, then Managing Director, was appointed Chairman. This Tax Reform Commission - under the direction of then Minister of Planning Winston Dookeran - implemented the only tax reform the country has seen in the last 40 years. The marginal tax rate for all citizens was reduced from 70% to 35%. VAT, the indirect tax, was introduced in the record time of 18 months.
During the period 1986 to 1991, the Government committed to provide tertiary health care; and establish a local medical teaching faculty. By an Act of Parliament, the Eric Williams Medical Science Complex was established. Steve Ferguson was appointed the first Chairman of its 25 member Board. The facility comprising 76 buildings at Mt. Hope was commissioned and operational within 18 months. The Eric Williams Medical Science Complex made a profit in its first year of operations.
By 1995, the National Insurance Board, which had been successfully established by Mervyn de Souza, had fallen into deficit. The Government’s plan to return the fund to a surplus position was implemented by a board chaired by Edward Bayley – another talented executive and director at Maritime. The operations returned to a surplus position by 1998.
Also in 1995, the Government was seeking to improve the effectiveness of its operations in the Energy Sector. Steve Ferguson was appointed Chairman of the Board of the National Gas Company. And interestingly enough in support of the governments’ energy policy, Maritime was the first company to utilize natural gas to power Maritime Centre’s air conditioning systems, something that is now considered the only option when powering large buildings in Trinidad.
Maritime’s former General Administration Manager Brian Kuei Tung was appointed Minister of Finance. His performance as the Minister of Finance under harsh economic conditions is to be admired.
Do you remember in that year when oil prices dipped below $11 a barrel?.
Hugh Eastman, a current director of Fidelity Finance, was the general manager of the field distribution system. Hugh served as a member on the Caroni Board as well as was Chairman of the National Flour Mills and Northwest Regional Health Authority.
Maritime also participated in a “lifeboat operation” as the only insurer willing to save Winsure policyholders after failure of the Winsure Life Insurance Company.
Financial services built on careful management and wise investment have put us in a prime position to support government projects. Over the years, Maritime has provided over 200 million dollars of direct long term finance to fund specific Government infrastructure projects.
As you can see tonight, there is quite a lot to be grateful for, a lot to celebrate. And today, while we are here to commemorate 50 years of strength and recognize all those who contributed to our success, we are also here to look forward with hope and high expectations for the next 50 years of the Maritime Financial Group.
In the next 50 years, those who will follow us should observe that today is but the first step in an extended journey, when Maritime Life prepares to set a new course in the financial services industry. In 2010, we performed steadily in a global and local environment of uncertainty. In Trinidad and Tobago, the particular challenges included the unresolved situation at Colonial Life; low natural gas prices and shrinking oil production, rising government debt, low investment yields; and dissatisfied public sector employees.
On the international scene, the financial meltdown has taken its toll and soon your children will be reading about it in their history textbooks. We hope that the worst is now behind us but there has been a dramatic shift in power from the developed West to the emerging East. Those of us who are cricket fans might draw the very same conclusion. It is clear to see that the next 50 years will be characterized by different geopolitical rivalries, new international security challenges and tensions in trade, migration, and business competition.
Against this backdrop, Maritime Life and its subsidiaries remain prepared to sail rough seas and uncharted waters.
This significant anniversary year - 2011 – finds Maritime rearing to go, and ambitious. For those of you who believe that life begins at 50 then welcome to our world. Mature and self-assured at 50, we possess a wealth of experience and knowledge. The foundations have been built. We have accumulated highly liquid positions as we look for growth opportunities in a weakening economy. Our group of companies will continue to develop new financial services products, streamline operations through the use of technology for operational excellence, and is poised to grow in innovative ways.
But In the deliverance of a financial product that is predicated on strength and trust, transparency and service delivery will continue to be of utmost importance. Excellence in service delivery is an essential source of strength as companies emerge from recessionary periods. Brands that have deteriorated, the ease of access to information about companies, the reduction of switching costs between competitors have all created a more challenging environment for service delivery. Evidence shows that our clients are no longer tolerating the rushed and inconvenient service that has become all too common in this country and our industry. Instead, clients are looking for an experience that satisfies their needs beyond expectations and the companies that can provide this will win their loyalty. Now some believe that irritated clients will forgive their companies and come back for more bad service. Research indicates that, on the contrary, whether in business or politics customers who feel they have been alienated often disappear without the slightest warning to find a new partner to work with in order to achieve their goals and objectives.
What was the single most important factor that contributed to our success? The simple answer is our people. The people at Maritime are entirely responsible for our success. Good people find their way to Maritime to become members of the Maritime team. I wish to thank our Team Members for their loyalty and support. You are as valuable to us, as you are to our clients.
As a company, we will continue to take up responsibility in society, working with government to achieve economic success for our nation. At the same time we continue to satisfy beyond expectation the needs of our clients. As individuals, let us continue to fly the Maritime flag with pride.
Remember Maritime means commitment
Maritime means trust
And together Maritime means strength on your side.
Thank you ladies and gentlemen.
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