NASSAU, The Bahamas, Thursday April 20, 2017 – Starting next Monday, CLICO policyholders in the Bahamas are set to receive long overdue payments.
After failing to deliver monies as promised back in January, the Government issued a statement on Tuesday assuring that qualified policyholders will receive three tranches of payments this year in April, July and November.
The Perry Christie administration had initially planned to finance the second phase of CLICO (Bahamas) payouts through a $45 million bond issue, with the monies raised designed to compensate former Executive Flexible Premium Annuity (EFPA) holders and those who had surrendered their pension policies.
The payments will total $5,000 per policyholder and be enough to payout 70 per cent or 1,595 claims from surrendered policyholders.
The 30 per cent not fully paid out will receive promissory notes (bonds) carrying a 4.25 per cent interest rate, equivalent to Bahamian Prime, which will distribute the balance owed over a four-year period.
In March 2016, the Government made the first payout totaling just over $11 million.
The Bahamas Tribune reported that the second phase payout to former CLICO (Bahamas) clients was initially supposed to be triggered by the creation of a new insurance entity, a special purpose vehicle (SPV) to be called Coral Insurance Company. This will hold CLICO (Bahamas) insurance policies that remain in effect.
The SPV, which will be licensed and regulated by the Insurance Commission of the Bahamas (ICB), was supposed to be created by the second week of November 2016, and hold the remaining insurance portfolio until it is purchased by another insurer.