Shareholders of Barbados based Sagicor Financial Corporation (SFC) will this week vote on the company’s request to move its headquarters to Bermuda.

In a notice to shareholders dated April 29, 2016, the board of directors said a “majority of two-thirds” of shareholder votes was required at the annual general meeting on June 8 to continue with its registration in Bermuda and discontinuance in Barbados.

The decision to relocate the company’s headquarters, was taken in January last year, following the downgrade of the Barbados’ sovereign rating to B from BB- on December 19 by Standard & Poor’s, and the subsequent downgrade of Sagicor Life’s rating from BB+ to BB- and Sagicor Finance Limited’s US$150 million 10-year senior unsecured note to B because of “ratings on life insurers are capped at two notches above the sovereign rating of the country of domicile”.

The company said after carefully assessing the three shortlisted jurisdictions in which to register the company – Bermuda, Trinidad & Tobago and the United Kingdom – the board agreed that subject to appropriate shareholder approval, “the company should be continued into Bermuda and this was pursued”.

In their rationale, the directors of the company said they considered the proposed move practical, adding that they felt it was in the best interest of Sagicor that it “continues as an exempted company” under the laws of Bermuda and discontinued as a company under the laws of Barbados.

Sagicor says in addition to its investment grade, Bermuda was chosen because of the ease of redomiciliation, tax impact, ratings stability as well as reputational risk.

“Bermuda is rated investment grade, it has a very tax friendly regime, it had no regulatory hurdles for our business and the ease of continuance meant it could be achieved in the most efficient way,” the company stated in a document released to the press.