In November 1998, Hand in Hand acquired the majority (67 per cent) of the shares of GCIS Inc., a Composite Insurance company previously owned by Government agencies. This acquisition brings to Hand in Hand the flexibility of a non-mutual operation, combined with another 10000+ clients.
Hand-In-Hand viewed the 1998 acquisition of 67% of GCIS’s ownership twofold: first, as a move in pursuit of its corporate objective of providing efficient, adequate, modern, and affordable Insurance Service. Second, the GCIS acquisition allowed HIH to own the second-largest Motor Portfolio and to be a key competitor of HIH in Motor Insurance.
The GCIS acquisition also allowed HIH a proprietary insurance subsidiary, facilitating capitalisation, when needed, and providing a venue for any future mergers and strategic alliances.
Using Hand-In-Hand inputs, GCIS was able, in the first year after acquisition, to right-size, reinsure, implement new technologies, train and develop staff, and ultimately increase profitability without losing consumer and client confidence.
