The Central Bank of Trinidad and Tobago is reportedly planning to offload cash-strapped Colonial Life Insurance Company (CLICO), as part of its plan to recover the funds infused to keep it running.
In 2009, the Trinidad and Tobago Government was forced to infuse billions of dollars to save CLICO, which was on the verge of collapse, reported m.jamaicaobserver.com.
A statement by the Central Bank of Trinidad and Tobago Jwala Rambarran was cited by the publication which confirmed that the bank was in the market for a buyer.
"As part of the resolution strategy for CLICO, the Central Bank proposes to transfer CLICO’s traditional insurance portfolio for value to an acquiring insurance company that is well capitalised, has a proven track record and the capacity to honour all obligations to policyholders" Rambarran told the news portal.
"An independent actuarial firm has, therefore, been engaged to value CLICO’s traditional business for this purpose and the exercise is still in progress."
Following valuation of the insurance company, the central bank will initiate the sale and transfer of CLICO’s traditional insurance portfolio on a transparent, open market basis.
During 2009, CLICO and its sister company, the British American Insurance Company (BAICO) went bankrupt, subsequently the Trinidad and Tobago Government signed an agreement with then CLICO chairman Lawrence Duprey, and became 49% owner of CLICO’s stake.
The central bank also said that the divesture is essential to protect the interests of policyholders and creditors and to thwart disruption, substantial damage or impairment of the country’s financial system.
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Image: Central Bank of Trinidad and Tobago plans to sale cash-strapped insurer CLICO.Photo: courtesy of adamr/FreeDigitalPhotos.net.