Monetary Authority releases final report on Baico

The final report of the controllers
appointed by the Cayman Islands Monetary Authority to manage the affairs of the
Cayman Branch of the British American Company Ltd has been received by CIMA,
the agency said in a statement.

“Messrs. Simon Whicker and Kris
Beighton of KPMG have confirmed that the company’s Cayman Branch has ceased to
carry on business and no longer carries any insurance liabilities,” read a
statement from CIMA.

The company has also been removed
from the Companies Register.

As a result of the completion of
the controller’s work, the Authority, effective 15 February, 2011, has revoked
the appointment of the controllers, pursuant to section 13(4)(a) of the Insurance
Law (2008 Revision).

In addition, the Class ‘A’
Insurer’s Licence granted to British American Insurance Company Ltd has been
cancelled, pursuant to section 14 of the Insurance Law.

CIMA initially decided to appoint
controllers to take charge of British American’s operations to protect
creditors and policy holders, as well as to secure local assets, belonging to,
or held in trust by the local entity, on 11 September, 2011.

This was done as a result of the
deteriorating financial operational situation of the insurance company and its
parent company, CL Financial Ltd, based in Trinidad and Tobago, causing
concerns about whether the parent company may have drained funds from British
American Insurance Company, leaving it underfunded.

However, in a positive move for
policy holders with British American Insurance Company Cayman,  the administrators of the insurer concluded
an agreement with BAF Insurance over the acquisition of all assets and liabilities
of British American Company for an undisclosed amount.

Both Mr. Whicker and Mr. Beighton
said the sale would protect the interests of thousands of British American
Insurance Company Cayman’s policy holders from the risk of losing their
existing coverage.

The sale covered the assets and
liabilities of the company’s health insurance, life insurance and pensions
business.