Jamaica’s life insurance companies continue to manage more than 50 per cent of local pension funds, according to the latest data from the Financial Services Commission, FSC, which is also reporting that the market has grown to $601 billion in value.

As of December 2018, there were 26 licensed investment managers working with the sector, only three of which were insurance companies.

The three together had $315.8 billion of pension assets under management, with Sagicor Life Jamaica as the dominant pension manager, followed by Guardian Life.

Securities dealers had the second-largest portion of managed assets at $238.8 billion, while the rest, approximating eight per cent of pension assets, was managed by a credit union and seven other entities.

The FSC also reported that participation of pension plans within the retail repo market continues to decline with a value of 2.3 per cent of total portfolio assets in December, down from 2.7 per cent at the end of the previous quarter.

The pooled investment arrangements represented the largest percentage of total private pension investments at 37 per cent or $224 billion.

The FSC said stocks and shares, at 41 per cent, and Government of Jamaica securities, at 34 per cent, represented the largest asset classes within the pooled investment arrangements and are the major drivers of both risk and returns. Real estate assets within this investment grouping grew by 12 per cent, while investments in bonds and repurchase agreements both declined by more than 36 per cent over the quarter.

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