Judicial management finalised for CLICO Life in Barbados
Deloitte Consulting will be the judicial managers for the embattled insurer.
BRIDGETOWN, Barbados, Thursday April 14, 2011 – After five months of waiting, policy holders of CLICO International Life Insurance Ltd. have now learnt that Deloitte Consulting Ltd. will be the judicial managers for the embattled insurer.
It was in December 2010 that the management of CLICO Life announced that they had been formed by the Office of the Supervisor of Insurance of the intention to place the company under judicial management. However, it was not until March this year that the Solicitor General Jennifer Edwards went before the High Court to petition for the appointment of a judicial manager.
Yesterday, Wednesday, a statement was issued by Deloitte to policy holders and the media informing them that the consulting division of the Barbados arm of the international accounting firm had been officially appointed as judicial manager under Section 57 of the Insurance Act.
It is expected that judicial management would rehabilitate the financially troubled company without having to fully liquidate it or wind it up through generating a strategy on the best way forward for CLICO Life.
According to the statement, Deloitte Consulting Ltd, represented by Oliver Jordan and Patrick Toppin, “will assume immediate control of the affairs of [CLICO International Life] and is responsible for assessing the financial position of the company and to report to the Court”.
Deloitte stated that it was required to produce an interim report to the High Court, which should be completed by May 30, and a more comprehensive report in 90 days, which should be available by mid-July.
The judicial manager pointed out that “the operations and coverage of [CLICO’s] existing policies remain in effect, subject to premiums on such policies continuing to be paid by policyholders”.
In addition it said the insurance company’s offices remained open and policyholders could continue to make premium payments in the normal manner.
It said all enquiries regarding claims or policies should be directed to CLICO.
Retired permanent secretary in the Ministry of Finance William Layne, who had led the Government-appointed Oversight Committee in 2010, had urged the speedy appointment of a judicial manager for CLICO Life as one of the final recommendations of the committee.
This route of judicial management for CLICO Life in Barbados follows precedents already set for similar affiliates of the Trinidad-based CL Financial Group across the Caribbean, including CLICO Guyana and CLICO (Belize) which were placed under judicial management in 2009.
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