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CLICO issues apology to policy holders

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CLICO International Life Insurance (CIL) has been issuing letters of apology to policyholders for the inability to honour its financial obligations, the Barbados Nation has reported.{{more}}

The correspondence blamed the company’s liquidity problems on the near collapse of its Trinidad and Tobago-based parent company, CL Financial, as well as policyholders withdrawing their investments.

A report in the Barbados Nation on June 23 said that the company informed policyholders that it was working with the assistance of a consulting actuary and accounting firm Ernst & Young to develop a proposal on the options available to settle its obligations.

Ernst & Young is also preparing a report to illustrate how Government can provide temporary liquidity support.

The company’s liquidity headache is exacerbated by a massive multi-million-dollar deficit in its statutory fund, as well as an imminent $300 million demand on the Executive Flexible Premium Annuities.

CIL, a subsidiary of CLICO Holdings Barbados Limited (CHBL), said it expected to have the final Ernst & Young report and a response from Government on the extent of its involvement “within the next few weeks”.

“At this time, we will be in a position to definitively outline the course of action to policyholders on how our obligations to them can be settled,” the letter said.

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