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Email: GM told Cruise employees that a 3rd party estimates internal share price of its self-driving unit at $11.80, down from $24.27 just one quarter ago

Greg Bensinger / Reuters:

 

 

—  General Motors’ (GM.N) Cruise saw its internal share price cut by more than half from a quarter ago as the fallout from an October accident continues to weigh on the self-driving car company.

Cruise employees were told the share price had been estimated by a third party at $11.80, according to an email viewed by Reuters. That’s down from a prior estimate of $24.27 just one quarter ago.
“We cannot ignore that this estimate is significantly lower than we’ve seen before and that there are real life impacts for each of us,” wrote Craig Glidden, chief administrative officer for Cruise, in the email.

 

Cruise has been working to recover from an October accident in which a woman was dragged by one of its vehicles after being struck by a human driven car. The company’s permit to operate in California was suspended and Cruise has stopped all testing on public roads in the United States.
Glidden said Cruise has a “longer pathway towards scaled commercialization.” The company last year had plans to roll out self-driving taxis in nearly a dozen U.S. cities but has since cut a quarter of jobs and seen its CEO, co-founder and others leave.

 

It has been a difficult few months for the once-promising Cruise. GM last month said it slashed about $1 billion from Cruise’s annual budget and the firm released a withering safety analysis of the October crash in which evidence was shown that executives withheld important data from regulators, the press and the public.
It is being probed by a variety of government agencies including the Securities and Exchange Commission, Department of Justice and the National Highway Traffic Safety Administration.

 

Cruise is targeting a limited return to city streets with human drivers later this year, likely in Houston or Dallas, according to people familiar with the matter.
However, Cruise executives told some engineering and operations staff in internal meetings in recent weeks that they should not expect to see its robotaxis on city streets again until the fourth quarter, Reuters reported last month. The sources declined to be identified because they were not authorized to speak on Cruise’s behalf. Cruise has denied this characterization.

 

 

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— Techmeme

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B&G Foods reports financial results for fourth quarter and full year 2023

— Net Cash Provided by Operating Activities Increased by $241.8 Million for Full Year 2023 —

— Principal Amount of Long-Term Debt Decreased by $340.1 Million During Full Year 2023 —

 

 

PARSIPPANY, N.J. — (BUSINESS WIRE) — B&G Foods, Inc. (NYSE: BGS) today announced financial results for the fourth quarter and full year 2023.

 

Financial results for the fourth quarter and full year 2023 reflect the impact of the Back to Nature divestiture on the first day of fiscal 2023 and the Green Giant U.S. shelf‑stable divestiture during the fourth quarter of 2023.

 

Summary

Fourth Quarter of 2023

Fiscal Year 2023

(In millions, except per share data)

Change vs.

Change vs.

Amount

Q4 2022

Amount

FY 2022

Net Sales

$

578.1

(7.2

)

%

$

2,062.3

(4.7

)

%

Base Business Net Sales (1)

$

562.3

(2.3

)

%

$

1,997.2

(1.5

)

%

Diluted EPS

$

0.03

(91.2

)

%

$

(0.89

)

nm

%

Adj. Diluted EPS (1)

$

0.30

(25.0

)

%

$

0.99

(8.3

)

%

Net Income (Loss)

$

2.6

(89.4

)

%

$

(66.2

)

nm

%

Adj. Net Income (1)

$

23.5

(18.7

)

%

$

73.9

(3.1

)

%

Adj. EBITDA (1)

$

86.8

(7.3

)

%

$

318.0

5.7

%

 

 

Guidance for Full Year Fiscal 2024

  • Net sales range of $1.975 billion to $2.020 billion.
  • Adjusted EBITDA range of $305 million to $325 million.
  • Adjusted diluted earnings per share range of $0.80 to $1.00.

 

 

Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, stated, “B&G Foods’ fourth quarter and fiscal 2023 results demonstrated strong progress, with improved margins, stabilizing volumes, stronger cash flows, and a reduction in leverage. We further completed the divestiture of Green Giant U.S. canned vegetables to focus and strengthen the future portfolio.”

 

Financial Results for the Fourth Quarter of 2023

Net sales for the fourth quarter of 2023 decreased $45.1 million, or 7.2%, to $578.1 million from $623.2 million for the fourth quarter of 2022. The decrease was primarily attributable to a decrease in unit volume due to the divestitures of the Green Giant U.S. shelf-stable product line and Back to Nature, a decrease in net pricing and the negative impact of foreign currency. Net sales of Back to Nature, which the Company divested on January 3, 2023, and therefore not part of the Company’s fiscal 2023 results, were $11.9 million during the fourth quarter of 2022(2). Net sales of the Green Giant U.S. shelf-stable product line, which the Company divested on November 8, 2023, were $19.9 million lower in the fourth quarter of 2023 compared to the fourth quarter of 2022, primarily as a result of the divestiture.

 

Base business net sales for the fourth quarter of 2023 decreased $13.3 million, or 2.3%, to $562.3 million from $575.6 million for the fourth quarter of 2022. The decrease in base business net sales was driven by a decrease in net pricing and the impact of product mix of $15.9 million, or 2.8% of base business net sales (largely driven by a decrease in the Company’s Crisco pricing consistent with the Company’s Crisco pricing model as the Company’s costs for oil declined), and the negative impact of foreign currency of $0.3 million, partially offset by an increase in unit volume of $2.9 million.

 

Net sales of Clabber Girl increased $8.2 million, or 26.3%; net sales of Maple Grove Farms increased $0.7 million, or 3.4%; and net sales of the Company’s spices & seasonings(3) increased $0.7 million, or 0.8%. Net sales of Crisco decreased $10.6 million, or 8.7%; net sales of Green Giant (including Le Sueur but excluding net sales of the Green Giant U.S. shelf-stable product line) decreased $5.2 million, or 4.4%; net sales of Cream of Wheat decreased $2.2 million, or 9.0%; and net sales of Ortega decreased $0.3 million, or 1.0%, for the fourth quarter of 2023, as compared to the fourth quarter of 2022. Base business net sales of all other brands in the aggregate decreased $4.6 million, or 3.5%, for the fourth quarter of 2023, as compared to the fourth quarter of 2022.

 

Gross profit was $125.2 million for the fourth quarter of 2023, or 21.7% of net sales. Adjusted gross profit(1), which excludes the negative impact of $1.6 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during the fourth quarter of 2023, was $126.8 million, or 21.9% of net sales. Gross profit was $126.1 million for the fourth quarter of 2022, or 20.2% of net sales. Adjusted gross profit, which excludes the negative impact of $2.5 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during the fourth quarter of 2022, was $128.6 million, or 20.6% of net sales.

 

The improvement in gross profit as a percentage of net sales was driven by an increase in net pricing relative to input costs as compared to the fourth quarter of 2022, the moderation of input cost inflation, lower transportation and warehousing costs, and lower depreciation expense. Beginning in the fourth quarter of 2022, the Company has realized the benefits of previously announced list price increases, which, together with additional list price increases in 2023, partially offset by certain list price decreases, contributed to the Company’s recovery in gross profit as a percentage of net sales during the fourth quarter of 2023.

 

Selling, general and administrative expenses increased $1.3 million, or 2.7%, to $53.2 million for the fourth quarter of 2023 from $51.9 million for the fourth quarter of 2022. The increase was composed of increases in general and administrative expenses of $5.8 million and consumer marketing expenses of $0.9 million, partially offset by decreases in warehousing expenses of $2.6 million, selling expenses of $2.3 million and acquisition/divestiture-related and non-recurring expenses of $0.5 million. Expressed as a percentage of net sales, selling, general and administrative expenses increased by 0.9 percentage points to 9.2% for the fourth quarter of 2023, as compared to 8.3% for the fourth quarter of 2022.

 

In connection with the Company’s sale of assets relating to the Green Giant U.S. shelf-stable product line, which was completed during the fourth quarter of 2023, the Company recorded a loss on sale of assets of $137.7 million during fiscal 2023, of which $132.9 million was recorded during the third quarter and $4.8 million was recorded during the fourth quarter of 2023.

 

During the fourth quarter of 2023, the Company recorded pre-tax, non-cash impairment charges of $20.5 million related to intangible trademark assets for the Baker’s Joy, Molly McButter, Sugar Twin, and New York Flatbreads brands. The Company partially impaired the Baker’s Joy and Sugar Twin brands, and the Company fully impaired the Molly McButter and New York Flatbreads brands.

 

Net interest expense increased $3.9 million, or 10.8%, to $40.2 million for the fourth quarter of 2023 from $36.3 million for the fourth quarter of 2022. The increase was primarily attributable to higher interest rates on the Company’s long-term debt and a $0.5 million loss on extinguishment of debt, partially offset by a reduction in average long‑term debt outstanding as compared to the fourth quarter of 2022.

 

The Company’s net income was $2.6 million, or $0.03 per diluted share, for the fourth quarter of 2023, compared to net income of $24.3 million, or $0.34 per diluted share, for the fourth quarter of 2022. The decrease in net income and diluted earnings per share were primarily attributable to the Green Giant U.S. shelf-stable and Back to Nature divestitures, pre-tax, non-cash impairment charges of $20.5 million related to intangible trademark assets and an increase in interest expense. Diluted earnings per share was also negatively impacted by an increase in diluted weighted average shares outstanding. The Company’s adjusted net income for the fourth quarter of 2023 was $23.5 million, or $0.30 per adjusted diluted share, compared to adjusted net income of $28.9 million, or $0.40 per adjusted diluted share, for the fourth quarter of 2022. The decrease in adjusted net income and adjusted diluted earnings per share were primarily attributable to the Green Giant U.S. shelf-stable and Back to Nature divestitures and an increase in interest expense. Adjusted diluted earnings per share was also negatively impacted by an increase in diluted weighted average shares outstanding.

 

For the fourth quarter of 2023, adjusted EBITDA was $86.8 million, a decrease of $6.8 million, or 7.3%, compared to $93.6 million for the fourth quarter of 2022. The decrease in adjusted EBITDA was primarily attributable to the Green Giant U.S. shelf-stable and Back to Nature divestitures. Adjusted EBITDA as a percentage of net sales was 15.0% for the fourth quarter of 2023, compared to 15.0% for the fourth quarter of 2022.

 

Financial Results for Full Year Fiscal 2023

Net sales for fiscal 2023 decreased $100.7 million, or 4.7%, to $2,062.3 million from $2,163.0 million for fiscal 2022. The decrease was primarily attributable to the Back to Nature divestiture, the Green Giant U.S. shelf‑stable divestiture, and a decrease in unit volume and the negative impact of foreign currency, which were partially offset by an increase in net pricing and the impact of product mix. Net sales of Back to Nature, which the Company divested on January 3, 2023, and therefore not part of the Company’s fiscal 2023 results, were $46.3 million during fiscal 2022(2). Net sales of the Green Giant U.S. shelf-stable product line, which the Company divested on November 8, 2023, were $24.6 million lower in fiscal 2023 compared to fiscal 2022, primarily due to the divestiture.

 

Base business net sales for fiscal 2023 decreased $30.0 million, or 1.5%, to $1,997.2 million from $2,027.2 million for fiscal 2022. The decrease in base business net sales was driven by a decrease in unit volume of $118.2 million and the negative impact of foreign currency of $5.1 million, partially offset by an increase in net pricing and the impact of product mix of $93.3 million, or 4.6% of base business net sales.

 

Net sales of Clabber Girl increased $31.1 million, or 32.1%; net sales of the Company’s spices & seasonings(3) increased $8.1 million, or 2.2%; and net sales of Maple Grove Farms increased $2.4 million, or 2.9%, in fiscal 2023 as compared to fiscal 2022. Net sales of Crisco decreased $38.2 million, or 10.3%; net sales of Green Giant (including Le Sueur and excluding net sales of the Green Giant U.S. shelf-stable product line) decreased $28.7 million, or 6.6%; net sales of Ortega decreased $6.4 million, or 4.1%; and net sales of Cream of Wheat decreased $2.9 million, or 3.6%, in fiscal 2023, as compared to fiscal 2022. Base business net sales of all other brands in the aggregate increased $4.6 million, or 1.0%, for fiscal 2023, as compared to fiscal 2022.

 

Gross profit was $455.5 million for fiscal 2023, or 22.1% of net sales. Adjusted gross profit(1), which excludes the negative impact of $2.9 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during fiscal 2023, was $458.4 million, or 22.2% of net sales. Gross profit was $409.6 million for fiscal 2022, or 18.9% of net sales. Adjusted gross profit, which excludes the negative impact of $9.1 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during fiscal 2022, was $418.7 million, or 19.4% of net sales.

 

The improvements in gross profit and gross profit as a percentage of net sales were driven by an increase in net pricing relative to input costs as compared to fiscal 2022, the moderation of input cost inflation, lower transportation and warehousing costs, and lower depreciation expense. Beginning in the fourth quarter of 2022, the Company has realized the benefits of previously announced list price increases, which, together with additional list price increases in 2023, partially offset by certain list price decreases, contributed to the Company’s recovery in gross profit and gross profit as a percentage of net sales during fiscal 2023.

 

Selling, general and administrative expenses increased $5.6 million, or 3.0%, to $196.0 million for fiscal 2023 from $190.4 million for fiscal 2022. The increase was composed of increases in general and administrative expenses of $14.1 million and consumer marketing expenses of $3.1 million, partially offset by decreases in warehousing expenses of $5.3 million, selling expenses of $3.2 million and acquisition/divestiture-related and non-recurring expenses of $3.1 million. Expressed as a percentage of net sales, selling, general and administrative expenses increased by 0.7 percentage points to 9.5% for fiscal 2023, as compared to 8.8% for fiscal 2022.

 

In connection with the Company’s sale of assets relating to the Green Giant U.S. shelf-stable product line, which was completed during the fourth quarter of 2023, the Company recorded a loss on sale of assets of $137.7 million during fiscal 2023, of which $132.9 million was recorded during the third quarter and $4.8 million was recorded during the fourth quarter of 2023.

 

During the fourth quarter of 2023, the Company recorded pre-tax, non-cash impairment charges of $20.5 million related to intangible trademark assets for the Baker’s Joy, Molly McButter, Sugar Twin, and New York Flatbreads brands. The Company partially impaired the Baker’s Joy and Sugar Twin brands, and the Company fully impaired the Molly McButter and New York Flatbreads brands.

 

Net interest expense increased $26.4 million, or 21.1%, to $151.3 million for fiscal 2023 from $124.9 million for fiscal 2022. The increase was primarily attributable to higher interest rates on the Company’s long-term debt, the accelerated amortization of deferred debt financing costs relating to long-term debt prepayments and a $0.5 million loss on extinguishment of debt during the fourth quarter of 2023, partially offset by a reduction in average long-term debt outstanding, a $0.8 million gain on extinguishment of debt during the second quarter of 2023 and a $0.6 million gain on extinguishment of debt during the third quarter of 2023.

 

The Company had a net loss of $66.2 million, or $0.89 per diluted share, for fiscal 2023, compared to a net loss of $11.4 million, or $0.16 per diluted share, for fiscal 2022. The Company’s net loss for fiscal 2023 was primarily attributable to the pre-tax, non-cash impairment charges during the third quarter of 2023, the loss on sale during the fourth quarter of 2023 in connection with the sale of assets relating to the Company’s Green Giant U.S. shelf-stable product line, the pre-tax, non-cash impairment charges recorded during the fourth quarter of 2023 related to intangible trademark assets, and the net negative impact on income taxes resulting from the Back to Nature divestiture. The Company’s net loss for fiscal 2022 was primarily attributable to non‑cash charges for the impairment of assets held for sale in connection with the Back to Nature divestiture. The Company’s adjusted net income for fiscal 2023 was $73.9 million, or $0.99 per adjusted diluted share, compared to adjusted net income of $76.2 million, or $1.08 per adjusted diluted share, for fiscal 2022.

 

For fiscal 2023, adjusted EBITDA was $318.0 million, an increase of $17.0 million, or 5.7%, compared to $301.0 million for fiscal 2022. The increase in adjusted EBITDA was primarily attributable to the improvement in gross profit described above, partially offset by the impact of the Green Giant U.S. shelf-stable and Back to Nature divestitures. Adjusted EBITDA as a percentage of net sales was 15.4% for fiscal 2023, compared to 13.9% for fiscal 2022.

 

Full Year Fiscal 2024 Guidance

For fiscal 2024, net sales are expected to be $1.975 billion to $2.020 billion, adjusted EBITDA is expected to be $305 million to $325 million, and adjusted diluted earnings per share are expected to be $0.80 to $1.00.

 

B&G Foods provides earnings guidance only on a non-GAAP basis and does not provide a reconciliation of the Company’s forward-looking adjusted EBITDA and adjusted diluted earnings per share guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for deferred taxes; acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets); gains and losses on extinguishment of debt; impairment of assets held for sale; impairment of intangible assets; non-recurring expenses, gains and losses; and other charges reflected in the Company’s reconciliation of historic non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding B&G Foods’ non-GAAP financial measures, see “About Non-GAAP Financial Measures and Items Affecting Comparability” below.

 

Conference Call

B&G Foods will hold a conference call at 4:30 p.m. ET today, February 27, 2024 to discuss fourth quarter and full year 2023 financial results. The live audio webcast of the conference call can be accessed at www.bgfoods.com/investor-relations. A replay of the webcast will be available following the conference call through the same link.

 

About Non-GAAP Financial Measures and Items Affecting Comparability

“Adjusted net income” (net income (loss) adjusted for certain items that affect comparability), “adjusted diluted earnings per share” (diluted earnings (loss) per share adjusted for certain items that affect comparability), “base business net sales” (net sales without the impact of acquisitions until the acquisitions are included in both comparable periods and without the impact of discontinued or divested brands), “EBITDA” (net income (loss) before net interest expense, income taxes, and depreciation and amortization), “adjusted EBITDA” (EBITDA as adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets), gains and losses on extinguishment of debt, impairment of assets held for sale, and non-recurring expenses, gains and losses), “adjusted gross profit” (gross profit adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) and “adjusted gross profit percentage” (gross profit as a percentage of net sales adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) are “non-GAAP financial measures.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP) in B&G Foods’ consolidated balance sheets and related consolidated statements of operations, comprehensive (loss) income, changes in stockholders’ equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The Company’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

 

The Company uses non-GAAP financial measures to adjust for certain items that affect comparability. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items that affect comparability, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources.

 

Additional information regarding EBITDA and adjusted EBITDA and a reconciliation of EBITDA and adjusted EBITDA to net income (loss) and to net cash provided by operating activities, is included below for the fourth quarter and full year 2023 and 2022, along with the components of EBITDA and adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share and base business net sales to the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive (loss) income, changes in stockholders’ equity and cash flows.

 

End Notes

(1)

Please see “About Non-GAAP Financial Measures and Items Affecting Comparability” below for the definition of the non-GAAP financial measures “base business net sales,” “adjusted diluted earnings per share,” “adjusted net income ,” “EBITDA,” “adjusted EBITDA,” “adjusted gross profit” and “adjusted gross profit percentage,” as well as information concerning certain items affecting comparability and reconciliations of the non-GAAP terms to the most comparable GAAP financial measures.

(2)

Excludes net sales of certain Back to Nature products not part of the divestiture that the Company will soon transition to another brand name.

(3)

Includes the spices & seasoning brands acquired in the fourth quarter of 2016, as well as the Company’s legacy spices & seasonings brands, such as Dash and Ac’cent, and spices & seasonings products launched by the Company and sold under license.

nm

–

Not meaningful.

 

About B&G Foods, Inc.

Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods’ diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there’s a little something for everyone. For more information about B&G Foods and its brands, please visit www.bgfoods.com.

 

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” The forward-looking statements contained in this press release include, without limitation, statements related to B&G Foods’ expectations regarding net sales, adjusted EBITDA and adjusted diluted earnings per share, and the Company’s overall expectations for fiscal 2024 and beyond. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “projects,” “intends,” “anticipates,” “assumes,” “could,” “should,” “estimates,” “potential,” “seek,” “predict,” “may,” “will” or “plans” and similar references to future periods to be uncertain and forward-looking.

Contacts

Investor Relations:

ICR, Inc.

Dara Dierks

866.211.8151

Media Relations:

ICR, Inc.

Matt Lindberg

203.682.8214

Read full story here

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The AACCNJ calls for an immediate moratorium on all public non-emergency public procurement contracts for up to $5M 

TRENTON, N.J. —  The African American Chamber of Commerce of New Jersey (AACCNJ) seeks the support of the Murphy Administration, NJ State Senate President Nicholas P. Scutari, Assemblyman and Speaker, Craig J. Coughlin, and NJ State Representative, and NJ Legislative Black Caucus Chair, Shavonda E. Sumter, in its request for a moratorium and on all non-emergency public procurement contracts up to five million effective immediately.

 

The AACCNJ formed a task force to spearhead the next steps with the Murphy Administration as a result of the findings of the State’s commissioned study, conducted by Mason Tillman Associates, LTD, which documented the institutional discrimination to African American businesses in NJ. The body of the Task Force believes that the moratorium is important because there are still opportunities that will be presented by the Murphy administration to consider but without an immediate moratorium, the same outcome will occur for those that have benefitted in the past.

 

“The moratorium will be a precursor to finding a remedy to the gross harm done to Black businesses in the state procurement process,” said John E. Harmon, Sr., IOM, Founder, President & CEO, AACCNJ.

 

“We believe this can be done without legislative approval. Contracts are still being doled out as we wait for the next steps. It is business as usual; this step is necessary; and past practices may be accelerated in anticipation of new standards to level the playing field,” said Harmon.

 

The task force is co-chaired by Dr. Denise Anderson, Denise Anderson and Associates and Ferlanda Nixon, Esq., Chief of Public Policy & External Affairs, AACCNJ. Committee Members include John E. Harmon, Sr., President CEO, AACCNJ, Gary Mann, Chairman of the Board, AACCNJ, Tammeisha Smith, Vice Chair of the Board, Stan Prater, Senior Advisor to AACCNJ President & CEO, Tanya Freeman, Esq, Chair of the Board, NY State Black Business Alliance (NYSBBA), Robert Johnson, Esq., Secretary, AACCNJ, Board of Directors, Marcus Dyer, CPA, Treasurer, AACCNJ, Board of Directors, Robert Warrington, Esq., AACCNJ Board of Directors, and Monique Nelson, Executive Chair, UWG.

 

“We anticipate more recommended best practices to ensure a more equitable participation for Black businesses in public procurement as we go forward to codify definitive goals that incentivize inclusion and cement our mutual commitment to have a stronger and more equitable economy with the Murphy administration, and public stakeholders,” said Harmon.

 

“We see the acceptance of this requested moratorium as a good faith effort to advance the state’s procurement efforts more equitably.”

 

AACCNJ Press Release:  The African American Chamber of Commerce of New Jersey (AACCNJ) hosted a Town Hall Meeting with over three hundred in attendance. Topic: “The Fierce Urgency of Now” – A Presentation on the State’s Disparity Study on Feb. 8, 2024.

 

“As we move forward, we ask the Governor and his administration to also hold a statewide meeting, to discuss the results of the disparity study,” said Harmon.

 

“The Administration needs to establish a race and gender-based program with minority and woman-owned business utilization goals to end the discriminatory practices in its award of contracts,” said Harmon.

 

“Our mutual goal henceforth is to have a more equitable participation in every area of the public sector wherein economic opportunities exist.”

 

“The Study, as expected, revealed that African American businesses received little of the $ 18.5 billion the Murphy administration spent on contracts for construction, professional services and goods and services from 2015 to 2020,” said John E. Harmon, Sr.

 

“While expecting the worst, little did we know that the Study would document African Americans received less than one (1) percent of the $18.5 billion dollars the State awarded to contractors. African American businesses received a pittance despite the fact that we represent, 14 percent of the population, and over 10 percent of the businesses in New Jersey willing and able to contract with the State.”

 

For updates on events and actions related to the recent Disparity Study, please visit aaccnj.com.

 

About the African American Chamber of Commerce of New Jersey

The African American Chamber of Commerce of New Jersey (AACCNJ) performs an essential role in the economic viability of New Jersey. While providing a platform for New Jersey’s African American business leaders, to speak with a collective voice, the AACCNJ advocates and promotes economic diversity fostering a climate of business growth through major initiatives centering on education and public policy. The Chamber serves as a proactive advocacy group with a 501(c) 3 tax exemption, which is shared by the National Black Chamber of Commerce.

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Korean hit film ‘12.12: The Day’ sets North American digital release – Global Bulletin

NORTH AMERICAN DIGITAL RELEASE

 

— North American digital distributor Echelon Studios has come on board “12.12: The Day,” the highest grossing film from Korea last year.

 

The film has been on theatrical release in North America, through 815 Pictures since last year and grossed over $1 million. Echelon said that the film will have a streaming release later this year. It will also be available to pre-order to own on iTunes, Apple TV, Google Play, YouTube Movies, Vudu, Vimeo OnDemand and OnDemand Korea shortly.

 

Directed by Kim Sung-su and with a Korean gross exceeding $90 million, the action drama is based on true events in December 1979, which resulted in an eight-year military junta in South Korea.

 

The film stars Hwang Jung-min (“Deliver Us from Evil”), Jung Woo-sung (“Asura: The City of Madness”), Lee Sung-min (“The Spy Gone North”), Park Hae-joon (“Believer”), Kang Gil-woo (Netflix series “The Glory”), and Jung Hae-in (Netflix’s “D.P.”).

TREASURE ISLAND

Principal photography has now wrapped on Kent Donguines’ feature documentary, “Treasure of the Rice Terraces,” produced by Crawford Filmworks and Aimer Films. Donguines is the first Filipino-Canadian filmmaker to travel to Buscalan, a secluded mountain community in Tinglayan, Kalinga, Philippines, to find the legendary artist Apo Whang-Odand her apprentices to learn about the history and symbolism of Kalinga tattoos.

 

“Treasure of the Rice Terraces” explores how this old practice, once banned and despised in Philippine society, is evolving into a chic and in-demand type of body art that has become a source of pride and belonging for many Filipinos, both at home and abroad. The documentary highlights the importance of preserving the tattoo culture for future generations and the challenges faced by the community in doing so. It also delves into the issues of stolen mummified bodies, cultural appropriation, stigmatization, and discrimination faced by tattooed individuals.

 

Anthropologist, Lars Krutak, Kim “Kuya Kim” Atienza, Miss Universe Philippines 2023 Michelle Dee, and Designer Mark Bumgarner are among the people interviewed for this documentary. Knowledge Network has the Canadian rights to the film.

 

SILENT SEASONS

Rabbit Films is to give birth to two additional seasons of “Silent Library Suomi,” a Finnish adaptation of a Nippon TV format. The first two seasons aired on the Walt Disney Company-owned Star Channel with 36 episodes in 2023, and a fourth season is also planned for autumn 2024. Riku Rantala, the multi-talented reporter, author, and host of a popular local documentary program, will continue to navigate the series.

 

First airing in 2001 on Nippon TV, Silent Library has been a primetime, family-oriented television sensation in Japan. It was created by the legendary Japanese comedian Matsumoto Hitoshi from the famed duo DOWNTOWN, and is produced by Nippon TV in association with Yoshimoto Kogyo.

 

Since its launch as an international format in 2007, local versions of Silent Library have been developed in more than 20 countries around the world, including MTV in the U.S.

 

 

Read More

 

— Variety

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NJ’s Project Labor Agreements discriminate against minority businesses and workers

By John E. Harmon Sr.
For USA Today

— In 2024, during Black History Month, the African American Chamber of Commerce is shining a spotlight on the racial disparities in New Jersey’s government procurement process.

New Jersey Statehouse rotunda. — Credits: Danielle P.

 

Recently, the Murphy Administration released a study that showed a “statistically significant disparity” when it comes to public contracts awarded to minority businesses.

 

In fact, according to the study, minority — African American businesses received less than half of 1% of $18.5 billion dollars the state awarded to contractors. A prime example of the disparity: Minority owned businesses represented 9.19% of the available construction businesses but received only 0.14% of the dollars on construction contracts valued from $65,000 to $5,710,000.

 

New Jersey has to fix its Project Labor Agreement policy

The release of the data contained in the Disparity Study helps to move stakeholders and the administration forward to find solutions. However, significant obstacles remain in the fairness of the state procurement process for minority- and women-owned businesses; the state’s Project Labor Agreement, or PLA, requirements, which inherently discriminate against non-union enterprises.

 

Since 2002, the State of New Jersey has allowed discriminatory PLAs to be placed on any public works contract over $5 million. PLAs discriminate against workers who are non-union, which is more than 78% of the construction workforce in the state. And an overwhelming 98% of all African American and Hispanic construction companies are non-union. Furthermore, at $5 million, New Jersey has the lowest threshold for PLAs for state works of any state in the country, meaning there are fewer and less lucrative projects for non-union and minority firms to bid on.

 

PLAs also come at a huge cost to New Jersey taxpayers. The most recent study conducted by the New Jersey Department of Labor and Workforce Development found that PLA projects costs were 30.5% higher than all non-PLA projects and they had a longer duration by approximately 22 weeks. Over 10 years have passed since this study was prepared, and not a single body or association has refuted the analyses and conclusions.

 

Unfortunately, some unions are pressuring local towns, such as Parsippany, Montclair and Brick, into passing ordinances to require PLAs on all public works projects in their municipalities and school districts. These ordinances are being passed with little input or knowledge to taxpayers, who will ultimately pay for artificially inflated construction costs contained in the PLAs. Despite false assurances from union officials with a vested interest in these discriminatory schemes, PLAs have been proven to be an expensive and deceptive practice that hurt taxpayers and discriminate against local and minority workers.

 

For example, last April, the New Jersey Superior Court Appellate Division ruled that the Delaware Joint Toll Bridge Commission “violated its fiduciary and legal duties” because it required a PLA for its project that resulted in just one bid at $69 million, or roughly 20% more than the estimated project cost. This is just one instance that shows how PLAs exclude qualified contractors and raise costs considerably for taxpayers.

New Jersey policy cannot discriminate a majority of its workers

If the Legislature is looking for solutions, they need to search no further. To ensure more of our public works contracts are afforded to minority- and women-owned businesses, New Jersey needs to increase the threshold from $5 million to $35 million so that our state is in alignment with the federal contracting levels as recently stipulated by President Joe Biden. The current PLA requirements discriminate against the majority of New Jersey’s workers and only benefits the union special interests.

 

Ensuring that taxpayer-funded construction projects are open to all workers who are paying for these projects with their own tax dollars is what is fair and equitable. Equal access to public works projects is the only way to ensure fair and equitable change for our state’s minority- and women-owned construction businesses.

 

 

— John E. Harmon Sr., IOM, founder, president and chief executive officer, African American Chamber of Commerce of New Jersey.

 

— Special to the USA TODAY Network

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Cell therapy company Tevogen Bio Holdings Inc. (Nasdaq: TVGN) rings opening bell at Nasdaq Exchange on Feb. 15, begins public trading on the open market

WARREN, N.J. — (BUSINESS WIRE) — Tevogen Bio Holdings Inc. (‘Tevogen Bio’) (Nasdaq: TVGN) celebrated commencement of its public trading by ringing the opening bell at the Nasdaq Stock Exchange in Times Square, New York, on Feb. 15, 2024.

 

This major milestone underscored the company’s commitment to its valued shareholders and its mission to develop commercially attractive, affordable, genetically unmodified off-the-shelf T cell therapies for large patient populations in virology, oncology, and neurology.

“We are deeply honored to become part of the Nasdaq family, a significant milestone that highlighted the commitment and dedication of our team,” remarked Ryan Saadi, MD, MPH, Chief Executive Officer of Tevogen Bio.

 

“This event not only reconfirmed company’s growth strategy but also reinforced our commitment to our mission. As we embark on this new chapter, we look forward to contributing to the market’s vibrancy and delivering value to our shareholders and patients.”

 

About Tevogen Bio

Tevogen Bio is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents and twelve pending patents, two of which are related to artificial intelligence.

 

Tevogen Bio is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen Bio’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.

 

Forward-Looking Statements

This press release contains certain statements that are not historical facts and are forward-looking statements within the meaning of the federal securities laws, including without limitation statements regarding the anticipated benefits of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”), the future financial condition and performance of Tevogen Bio, and the product candidates, products, markets, and expected future performance and market opportunities of Tevogen Bio. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “think,” “strategy,” “future,” “opportunity,” “potential,” “plan,” “seeks,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.

 

Factors that could cause actual future events to differ materially from the forward-looking statements in this communication include without limitation: (i) the effect of the announcement of the Business Combination on Tevogen Bio’s business relationships, operating results, and business generally; (ii) the outcome of any legal proceedings that may be instituted against Tevogen Bio related to the Merger Agreement or the Business Combination ; (iii) changes in the markets in which Tevogen Bio competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; (iv) changes in domestic and global general economic conditions; (v) risk that Tevogen Bio may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; (vi) risk that Tevogen Bio may not be able to develop and maintain effective internal controls; (vii) costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination or to realize estimated pro forma results and underlying assumptions, including with respect to estimated shareholder redemptions; (viii) the failure to recognize the anticipated benefits of the Business Combination and to achieve Tevogen Bio’s commercialization and development plans, and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen Bio to grow and manage growth economically and hire and retain key employees; (ix) the risk that Tevogen Bio may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; (x) the ability to develop, license or acquire new therapeutics; (xi) the risk that Tevogen Bio will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; (xii) the risk of product liability or regulatory lawsuits or proceedings relating to Tevogen Bio’s business; (xiii) uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, and approval and commercial development; (xiv) risks associated with intellectual property protection; (xv) Tevogen Bio’s limited operating history; and (xvi) those factors discussed in Tevogen Bio’s filings with the SEC and that that are contained in the Proxy Statement/Prospectus relating to the Business Combination.

 

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Proxy Statement/Prospectus and other documents to be filed by Tevogen Bio from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and while Tevogen Bio may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Contacts

Tevogen Communications

T: 1 877 TEVOGEN, Ext 701

communications@Tevogen.com

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African cinema set to shine at Berlin Film Festival, but continent’s moviemakers insist ‘there’s always room for more’

Africa’s growing screen industries are making their mark on the global stage, with three titles in the main competition at this year’s Berlin Film Festival, but how to unlock the continent’s still-untapped potential was a question on the minds of many at a conference hosted on Saturday by the European Film Market.

Tyler Ricketts (l.) and Carmen Thompson (Courtesy of Christopher Vourlias)

 

A partnership between EFM and Prudence Kolong’s Stockholm-based consulting firm Yanibes, AfroBerlin was launched to give a platform to filmmakers from Africa and the diaspora and “to find a place where they can share stories and experiences and be heard,” said Kolong, who also organizes the Cannes Film Festival’s AfroCannes industry showcase.

 

The event brought together industry professionals from the continent with their counterparts in Europe and beyond, underscoring the ways in which the often-marginalized African screen industries have elevated their international profile. “When we’re talking about the global film market…we are part of the discussion,” Kolong said. “People are thirsty to know more about African stories.”

 

This year marks an auspicious Berlinale for filmmakers from the continent, with veteran Mauritanian-Malian auteur Abderrahmane Sissako’s “Black Tea” and French-Senegalese director Mati Diop’s “Dahomey” both bowing in the main competition, alongside Nelson Carlos De Los Santos Arias’s “Pepe,” a co-production between the Dominican Republic, Namibia and Germany. The jury, meanwhile, is headed by actor Lupita Nyong’o, who was raised in Kenya and whose ascent to A-list status in Hollywood is a source of pride and inspiration for many up-and-coming African talents.

 

The day’s sessions — wide-ranging, spirited, at times fractious — highlighted both the dynamism of film and TV production in Africa and its diaspora, as well as the challenges filmmakers face at a time when global crises and shifting economic headwinds have rattled screen industries worldwide.

Mati Diop’s “Dahomey” is competing for the Golden Bear in Berlin. Courtesy of Berlin Film Festival

 

“Financing is a problem. Because we don’t have the infrastructure as such on the continent. We don’t have the funding bodies you have in Europe and the Americas,” said Jacqueline Nsiah, a member of the selection committee for the festival’s competitive Encounters strand, who appeared in conversation with Berlinale executive director Mariëtte Rissenbeck and Neom’s managing director of media industries, entertainment and culture, Wayne Borg.

 

“The biggest challenge is to find a way to create networks to create funding opportunities on the continent,” she continued. “Producers are trying to find ways to tap into private investors, private companies. And I think that needs to happen more.”

 

In recent years, the panacea for many African creators has been an uptick in commissioning spend from global streaming platforms, though that optimism has dimmed in light of Amazon’s decision last month to press pause on its original content production on the continent, and broader questions about whether streaming giants are fully committed to Africa.

 

Borg, however, stressed that “there’s a lot of movement the other way” into the region, adding that his growing Saudi Arabian production powerhouse is “keen to engage more with the African industry.”

 

“For us, the African market, the Indian market, are equally important to us. What we’re keen to do is to create the right recipe, the right ingredients, to do that,” he said. “We’re open for business.”

 

Crossing borders

Africa’s diaspora community was out in full force on Saturday, reflecting on the multiplicity of cultures and backgrounds that shaped them; the term “Afropean” — a mélange of African and European identities — was adopted by several of the speakers, while others represented the wider diaspora in Latin America, the Caribbean and the U.S.

 

“To be an African is not to belong to a so-called country,” said Welket Bungué, a multi-hyphenate of Bissau-Guinean and Portuguese descent who’s based in Berlin. “We can be simultaneous. We don’t have to be one thing or another.”

Abderrahmane Sissako is competing at this year’s Berlinale with “Black Tea.”“Black Tea” (© Olivier Marceny, Cinefrance Studios, Archipel 35, Dune Vision)

 

For many young Africans — whether the children of immigrant parents in Europe and the U.S. or the consumers of global content on African soil — the old borders no longer apply. The growth of the continent’s screen industries is likely to reflect that trend: While Neom’s Borg made a strong pitch for the Saudi biz — which, with financing tools such as the Red Sea Film Fund, is fast becoming a key player in the African market — Saturday’s conference also made the case that there’s room for more trans-Atlantic collaboration between countries in the global South.

 

Luiz Toledo of Brazil’s Spcine, the city of São Paulo’s film and TV body, which signed a co-production agreement with South Africa’s National Film and Video Foundation last year, underscored that Brazil is home to the second-largest Black population on the planet — making it ripe for co-productions and other collaborations with African partners.

 

Throughout the day, speakers highlighted the need for African creators to seize control of their own narratives. “In order to tell our story properly, three-dimensional, with an impact…we need to be in power positions at every step of the process,” said Tyron Ricketts, one of Germany’s most successful Black actors, who produced the series “Sam — a Saxon” for Disney Plus through his Panthertainment label.

 

What that looks like, the world is only beginning to find out. Africa is yet to produce a paradigm-shifting movie or series on the level of South Korea’s “Squid Game,” but Editi Effiong’s revenge thriller “The Black Book” became the first-ever Nigerian film last year to reach #3 on Netflix’s worldwide film charts, breaking the streamer’s Top 10 list in more than 69 countries.

 

“There’s nothing to say that content from the African continent, from the Middle East, shouldn’t find a global audience. Great stories will travel,” said Neom’s Borg. Despite the strong African representation at this year’s Berlinale, Nsiah insisted: “There’s always room for more.”

 

 

Read More

 

— Variety

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Cenntro Electric Group Limited announces approval of the scheme of arrangement by the Supreme Court of New South Wales

FREEHOLD, N.J. — (BUSINESS WIRE) — Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States (“U.S.“, the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada for the purpose of effecting the Scheme.

 

Cenntro is pleased to announce that the Supreme Court of New South Wales, Australia (the “Court“) made orders approving the proposed Scheme on Friday, Feb. 16, 2024 (Australian Eastern Daylight Time, “AEDT“).

 

Cenntro further confirms that it has today lodged an office copy of the orders made by the Court approving the Scheme with the Australian Securities and Investments Commission (“ASIC“) pursuant to sub-section 411(10) of the Corporations Act 2001 (Cth), as a result of which the Scheme is now legally effective.

 

An office copy of the Court orders lodged with ASIC is attached at Annexure A to this press release.

 

Eligible Cenntro shareholders who hold Cenntro ordinary shares of the Company as at 7 p.m. (AEDT) on Thursday, Feb. 22, 2024 (the “Record Date“) will receive one share of common stock in Cenntro Inc. in exchange for every one ordinary share of the Company which such eligible Cenntro shareholder held as of the Record Date.

 

Next steps

An indicative timetable of the key milestones remaining under the Scheme is set out below:

Expected date*

Event

Thursday, February 22, 2024 at 7:00pm

Record Date – being the time and date for determining entitlements to Scheme consideration

Tuesday, February 27, 2024

Implementation date – being the date on which the Scheme will be implemented and Cenntro shareholders will receive the Scheme consideration which they are entitled to

Thursday, February 29, 2024

Commencement of dispatch to Eligible Cenntro shareholders of statements confirming the issue of common stock in Cenntro Inc.

 

*All dates and times listed in the table above are in AEDT and are indicative only and subject to change. Cenntro, in consultation with Cenntro Inc., may vary any or all of these dates and times and will provide reasonable notice of any such variation. Any changes will be announced by Cenntro to Nasdaq and published on Cenntro’s website at www.cenntroauto.com.

 

About Cenntro Electric Group Ltd.

Cenntro Electric Group Ltd. (NASDAQ: CENN) is a leading maker and provider of electric commercial vehicles (“ECVs”). Cenntro’s purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 4 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. For more information, please visit Cenntro’s website at: http://www.cenntroauto.com/.

 

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as “may,” “believe,” “anticipate,” “could,” “should,” “intend,” “plan,” “will,” “aim(s),” “can,” “would,” “expect(s),” “estimate(s),””project(s),” “forecast(s)”, “positioned,” “approximately,” “potential,” “goal,” “strategy,” “outlook” and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management’s current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro’s forward-looking statements, please see disclosures contained in Cenntro’s public filings with the SEC, including the “Risk Factors” in Cenntro’s Annual Report on Form 10K/A filed with the Securities and Exchange Commission on July 6, 2023 and which may be viewed at www.sec.gov.

Contacts

Investor Relations Contact:
Chris Tyson

MZ North America

CENN@mzgroup.us
949-491-8235

Company Contact:
PR@cenntroauto.com
IR@cenntroauto.com

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AM Best upgrades Credit Ratings of CG United Insurance Ltd.; affirms Credit Ratings for most of Coralisle Group Ltd. subsidiaries

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of CG United Insurance Ltd. (CG United) (Barbados).

 

The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) for the life/health (L/H) and property/casualty (P/C) operating subsidiaries of Coralisle Group Ltd. (CG). The outlook of these ratings is stable. CG is a wholly owned intermediate holding company of Edmund Gibbons Limited, the ultimate parent company. All companies are domiciled in Bermuda, unless otherwise specified. (See below for a detailed listing of these companies).

 

The ratings reflect CG’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

 

On a consolidated basis, CG continues to demonstrate the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by ample liquidity and fungibility of resources across the organization. Financial leverage was moderate in 2022, after the acquisition of CG United in May of 2022, which was partially financed with debt. This debt was fully repaid in 2023. Reinsurance capacity was severely constrained going into 2023, which drove an increase in retentions on proportional treaties. To secure appropriate excess of loss limits given the additional retentions, higher excess of loss deductibles were accepted.

 

These, combined with much higher property exposure after the CG United acquisition, materially increased reinsurance dependence. However, AM Best believes the program remains supportive of the overall balance sheet assessment.

 

CG’s year-end 2022 results were materially impacted by adverse investment results that more than offset otherwise favorable operating results. Despite the adverse net results in 2022, CG has reported consistent favorable operating and net results over the last five years driven by health and P/C lines. Reported premium growth has been strong over the last five years, and especially strong in 2022, as CG closed on its acquisition of CG United in May and included associated premiums for seven months. Growth in 2023 is expected to be strong with full year CG United results as large rate increases are realized throughout the property portfolio. Potential for volatility in earnings remains high due to catastrophe exposure and the risk of significant health reform in Bermuda.

 

The ratings of CG United reflect its increased strategic importance to CG and its substantially complete integration with the legacy business. This integration includes the rebranding of CG United in 2022, combined with reinsurance purchasing, the licensing of CG United entities to sell CG health products and cost synergies related to consolidation of core systems and processes.

 

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks, for the following subsidiaries of Coralisle Group Ltd.:

  • Coralisle Insurance (BVI) Ltd. (British Virgin Islands)
  • British Caymanian Insurance Company Limited (Cayman Islands)
  • Coralisle Insurance Company Ltd.
  • Coralisle Life Assurance Company Ltd.
  • Coralisle Medical Insurance Company Ltd.
  • CG Atlantic Medical & Life Insurance Ltd. (Bahamas)
  • CG Atlantic General Insurance Ltd. (Bahamas)

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

John McGlynn
Senior Financial Analyst
+1 908 882 2106
john.mcglynn@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Bridget Maehr
Director
+1 908 882 2080
bridget.maehr@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com