The directors of Cayman General Insurance Company and parent company Cayman National Corporation have announced the company reached the full and final settlement with the Cayman Islands Government in the insurance claim relating to Hurricane Ivan.
At an Extraordinary General Meeting Thursday, shareholders were told that the Government’s claim was Cayman General’s largest resulting from Ivan.
Details of the settlement are not known, but Cayman National president and CEO Stuart Dack termed the deal ‘very complex’ at the shareholder’s meeting.
In the signed statement from the two boards of directors, which appears in full as a paid advertisement in today’s Caymanian Compass on page 9, the directors of the two companies thanked Leader of Government Business, McKeeva Bush, for leading the successful negotiations on behalf of Government.
Cayman General said the settlement will benefit the Cayman Islands because ‘it will ensure that more than $270,000,000 could be paid promptly in agreed insurance claims throughout the islands by CGI, including claims from the Cayman Islands Government.’
‘This large sum will be a big boost to the economy and recovery of these islands without which many Caymanians would lose their homes and businesses,’ the statement said.
Cayman General’s settlement with Government, along with the sale of shares to the Sagicor Group and a cash injection from Cayman National Corporation of between $25 million and $30 million, will allow the insurance company to adequately recapitalise after the unprecedented loses caused by Hurricane Ivan.