Lawson
On Tuesday, the Jamaica Stock Exchange suspended trading in Dyoll shares because of the insurance company's failure to "make a public announcement in response to rumours that Dyoll Group has experienced material financial losses. This information has not been reported to the JSE in accordance with Appendix 8." Yesterday the group issued a statement, over the signature of acting chairman of Dyoll Group Limited, Peter Lawson and chairman of Dyoll Insurance Company Limited, James Morrison, to clarify its financial position as well as its negotiations with a number of business interests for capital injection. The statement is reproduced below:
"IN LIGHT of Tuesday's events, when the Jamaica Stock Exchange decided to suspend trading in the ordinary shares of Dyoll Group Limited, the Boards of Dyoll Group Limited and Dyoll Insurance Company Limited have agreed to issue this joint release.
"In September 2004, Dyoll Insurance Company Limited suffered significant Hurricane claims in Cayman. These projected claims will impair the capital of Dyoll Insurance Company Limited, a wholly owned subsidiary of the Group.
"Discussions have been under way between Dyoll Group, AIC Group and GraceKennedy with respect to an alliance that would include Dyoll Insurance Company and would create a larger, stronger provider of insurance services in the Caribbean. The alliance is subject to further due diligence by GraceKennedy and approval by the respective boards.
"Dyoll Insurance Company Limited has been discussing the issue with its regulator, the Financial Services Commission, and they are aware of all ongoing issues.
PROPORTION AND VALUE
"Due to the sensitivity of these negotiations, the Board of Dyoll Group Limited in consultation with the Financial Services Commission, decided that disclosure should be made once, amongst other things (1) the proportion and value of Hurricane Ivan claims settled have reached the point, where with confidence they can state Hurricane Ivan claims liabilities in Cayman and (2) information on the imminent capital injection can reasonably be included.
"The Jamaica Stock Exchange Policy Statement on Disclosure" provides for a delay of communication in these circumstances.
"The Boards of both Dyoll Group Limited and Dyoll Insurance Company Limited continue to work with regulators and investors with a view to achieving a solution in the interest of all stakeholders and are encouraging the public to be as supportive as possible in this matter. The Boards expect to be in a position to provide further information within four business days."
