Jun 2016 Financial News

Central Bank: No plans to wind up Clico

Jun 18, 2016

Final bids are expected by midJuly for the traditional insurance portfolios of Clico and British American (Trinidad) Limited (BAT).

The Central Bank told the T&T Guardian the objective is to have the traditional insurance policies, such as life and home insurance transferred to another qualified institution that can take care of the policyholders smoothly and efficiently.

“Many insurance companies have sold a portfolio of business to other insurance companies over the years and policy holders’ insurance coverage and pensions continued uninterrupted,” the bank said in a statement.

“The sale of the traditional insurance portfolio does not mean that Clico is being wound up since Clico will continue to deal with its other liabilities and creditors including the Government.”

The Central Bank said the planned sale of the traditional insurance portfolios to a suitably qualified buyer had been publicly announced as part of the resolution strategy for the two companies since 2014.

The statement continued: “Updates on progress of the sale—and other aspects of the resolution—are submitted by the Central Bank to the High Court and to Parliament on a quarterly basis;  the latest one covers developments through March  31, 2016.

“The sale of the portfolios is being conducted through a transparent and open bidding process—advisors with the appropriate actuarial and advisory experience were hired in October 2015 and March 2016 for Clico and BAT respectively; in February a large number of local, regional and international insurance companies, banks and other financial institutions were invited to bid; following initial bids in April, companies were shortlisted; and presently the shortlisted companies are examining further information in order to make final bids by mid-July 2016.”

Members of the United Policyholders Group (UPG) expressed concern this week that the Central Bank was moving to “quietly” wind up Clico. Spokesman, Angeli Gadjadar, said the group had received information that four companies were in the process of bidding on the issue.

However, this was denied by Finance Minister Colm Imbert who told the T&T Guardian that in March, consistent with the published Clico Resolution Plan, the Central Bank invited more than 40 local, regional and international financial institutions to make offers to purchase the insurance company’s traditional portfolio.

Source:
Trinidad Guardian
Saturday June 18, 2016

http://www.guardian.co.tt/business/2016-06-18/central-bank-no-plans-wind-clico