Cayman Islands regulators have imposed business restrictions on the troubled insurer CLICO amid concerns about the company’s ability to meet its financial liabilities.
The Cayman Islands Monetary Authority this morning announced it had ordered that CLICO’s Cayman branch stop issuing new policies with investment features until it can improve its asset level to an amount CIMA is satisfied with.
CLICO (Cayman) has also been ordered to stop collecting new premiums on existing policies with investment features.
Additional reporting requirements have also been put in place so CIMA can better monitor CLICO’s business activities and financial condition.
CLICO was told of the restrictions on 3 March, the same day company representatives were trying to assure the Caymanian Compass that policyholders in Cayman had nothing to worry about, and that the Cayman branch had been unaffected by the company’s financial woes across the region.
CIMA is the latest regional regulator to act against the insurance and finance conglomerate. The fallout from CLICO’s financial woes has been spreading across the Caribbean since the shock 30 January decision of the Trinidad and Tobago Central Bank to bail out parent company, CL financial.
In the past fortnight regional regulators have ordered the liquidation of CLICO operations in both the Bahamas and Guyana, which in turn has had knock-on effects for subsidiaries in the Turks and Caicos Islands and Belize.
Local representatives told the Compass that CLICO (Cayman) had been unaffected by the Bahamas and Guyana liquidations as the Cayman operation was wholly under the management of CLICO (Trinidad).
Founded as Colonial Life Insurance Company in Trinidad in 1932, parent company CL financial developed into one of the largest conglomerates in the Caribbean, with worldwide assets recently estimated at roughly US$ 100 billion. The group has holdings in a range of industries including banking and financial services, general and life insurance, energy and petrochemicals, real estate and media and communications.
Read more in Monday’s Caymanian Compass.