CLICO issues apology to policy holders

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.