FEBRUARY 2013; KINGSTOWN, Saint Vincent and the Grenadines – Numerous delays are still being experienced by Governments of the O.E.C.S. and shareholders of CLICO International, as was revealed by Prime Minister of Saint Vincent and the Grenadines Dr. Ralph Gonsalves.
This he revealed during his 2013 Budget Presentation on Monday January 14, 2013 at the Saint Vincent and the Grenadines House of Assembly.
According to the Vincentian Prime Minister, “In the matter of CLICO International Life, we are far less advanced in part because of numerous delays in Barbados with the appointment of a Judicial Manager which, despite the urging of the Eastern Caribbean Currency Union Governments, did not take place until April 2011.”
The Judicial Manager Deloitte Consulting since appointment has filed a number of reports with the various Courts in the region, in the process “noting a substantial shortfall in assets as compared to liabilities. What makes things worse is that the assets are highly illiquid, being dominated by real property and inter-company debts.”
Dr. Gonsalves further pointed out that, “The Judicial Manager has advised that as at March 31, 2012, the total policy liabilities of CLICO International Life amount to BDS $837.4 million, and an estimated ‘fair market value’ of its assets in the sum of BDS $441.01 million.
“This fair market value assessment of the assets of BDS $764.5 million. The Non-EFPA liabilities of CLICO International Life amount to BDS $335.7 million and the EFPA liabilities are BDS $501.7 million.”
It means therefore that the assets available as a percentage of policyholders in CLICO International Life amount to 53-percent, but rises to 60-percent if the accrued interest on the EFPA’s is excluded.
“Clearly this is a problematic solution though less awesome on the face of it that which has confronted policy holders in BAICO (British American Insurance Company) where the assets available as a percentage of policyholder liabilities are far less.”
In light of this, the Vincentian Prime Minister went on to state, “A sensible solution to the CLICO International Life challenge has to be crafted regionally, given the regional character of CLICO International Life. Indeed the very location of the assets demands such a regional solution.
“For example, the bulk of CLICO International Life’s assets are located in Barbados – BDS $288.1 million, and Saint Lucia – BDS $102.8 million. Together these two countries account for 88.6 percent of CLICO International Life assets, and 56 percent of its liabilities.”
The liabilities in Barbados is BDS $364.89 million, and in Saint Lucia BDS $103.96 million. The CLICO International Life’s policyholders of the seven Eastern Caribbean Currency Union member countries other than Saint Lucia have aggregate liabilities of BDS $368.58 million, and assets located in their countries of BDS $50.13 million.
The Judicial Manager continues to press forward with exploring options for these policyholders, supported in their work by Eastern Caribbean Currency Union Governments.
Meanwhile with the full backing of the Eastern Caribbean Currency Union member countries, Dr. Gonsalves engaged further the Government of Barbados on other possible options going forward.
On December 28, 2012, he led a delegation of the Eastern Caribbean Currency Union member countries for discussions with the Prime Minister of Barbados, his Minister of Finance, and the Judicial Manager.
It is expected that in the near future, the Core Advisory Committee on Insurance in the Eastern Caribbean Currency Union will be fully engaged with the Government of Barbados and the Judicial Manager in fashioning a possible solution to the CLICO International Life challenge for reportage to the Law Courts in the shortest possible time.