In the 2010 ECCU Economic Review Presentation by Sir Dwight Venner Governor ECCB on January 20 , he said: “…A successful resolution of these matters will need the full assistance and cooperation of the governments of Trinidad and Tobago and Barbados with whom our member governments are in constant dialogue.”
The Governor was referring to the issues of the Colonial Life Insurance Company (CLICO) and the British American Insurance Company (BAICO) that were being dealt with, “in collaboration with technical staff from the member governments and the ECCB, supported by technical assistance from the World Bank. A successful resolution of these matters will need the full assistance and cooperation of the governments of Trinidad and Tobago and Barbados with whom, our member governments are in constant dialogue.”
Last May, Montserrat’s Financial Secretary as Supervisor of Insurance issued a notice advising the public to refrain from contracting certain businesses with CLICO, following the problems that arose where Montserratians, individuals, public and private businesses were facing losses totaling upwards of 80 million dollars (EC$80m).
In December, Herbert Harewood, Vice President – Human Resources issued a release titled, “CLICO INTERNATIONAL LIFE INSURANCE LTD COMMENCES RESTRUCTURING PROCESS”, which read as follows
The Minister of Finance, Honourable Christopher Sinckler has announced today, Tuesday, 14th December, 2010, that CLICO International Life Insurance Ltd will be placed under judicial management and that Deloitte & Touche has been appointed as the Judicial Manager.
Government has reaffirmed its commitment to the policy holders and employees and consequently, Judicial Management; is the route chosen, by which the company can be restructured and achieved continuity.
CLICO International Life Insurance Ltd’s commitment to policyholders and employees are our priority as we embark on a new phase towards recovery. The CLICO Board and Management team will continue to work diligently together with the Ministry of Finance and with the Offices of the Supervisors of Insurance in Barbados and the OECS territories in which we operate, to accelerate the rebuilding process and preserve the business as a going concern.
We commenced 2009 with cash resources in excess of $150 million, but these cash resources have been substantially reduced as a result of policyholder loss of confidence occasioned by the financial difficulties experienced by our parent company CL Financial. Our remaining assets are substantial and our asset sales initiatives to rebuild our strong cash position are bearing fruit.
We have concluded the sale of CLICO Mortgage and Finance Corporation to The Public Workers Credit Union and we are in the process of concluding the sale of CLICO International General Insurance to the Sandridge group.
It is clear however that these efforts will be ineffective unless there is also a restructuring of our short term obligations to policyholders and investors.
Net cash from our asset sales will therefore be held in escrow pending the appointment and we are hopeful that the proposals aimed at resolving our liquidity difficulties which we have presented to the relevant authorities will be embraced by the Judicial Manager. CLICO is fully prepared to work cooperatively with the Manager to ensure that solutions in the best interest of policyholders and investors are generated in order for the company to emerge as a stronger entity from this process.
CLICO is indeed heartened by the continued strong support from our many policyholders and investors even in the face of the difficulties we are experiencing, and we will work tirelessly to ensure that their investments are safeguarded.
We are also pleased that our employees and a significant number of our agents, who have been the backbone of our position as a market leader, have stayed with us and are actively involved in this rebuilding process. They have kept the company alive by maintaining contact with policy holders in these challenging times.
We accept that employees and policy holders will have questions and concerns regarding this new phase; in light of this, we will be holding a number of meetings with all employees to provide answer questions.
Policy holders will also have the choice of asking direct questions or making comments through our website www.clicoinfo.com where queries/ comments can be submitted by clicking CONTACT US. Direct responses will be sent back to the policy holder or concerned citizens by email if their email address is given in the options provided.
CLICO appreciates the support of all policyholders, agents and employees in Anguilla, Antigua, Barbados, Dominica, Grenada, Montserrat, St. Kitts, St. Lucia and St. Vincent during this transition period and we look forward to a successful future.
Employees are asked seek clarification on any matter which they may be unsure and desist from introducing innuendo as we see this as a phase in the restructuring process and a positive intervention to resolve the difficulties facing the company.
We will be organizing a number of meetings to keep you updated.”
