Barbados plans CLICO bailout
The Barbados government is contemplating a rescue package for cash-strapped CLICO International Life, Finance Minister Chris Sinckler has said.
Sinckler told a news confe-rence that the insurance com-pany, whose Trinidad-based parent company collapsed a few years ago, was in need of a "small" amount of funds to keep it operational.
Sinckler said Cabinet had already agreed to a restructuring plan prepared by the company's judicial managers, Deloitte Consulting.
"The restructuring plan will be approved by the High Court and will be executed jointly by the judicial manager and a new company that is being put in place that government has established to manage the assets of CLICO in the various trusts that are to be created for such assets," Sinckler said.
Under the plan, it is envisaged that all policyholders with traditional insurance policies, such as life, health and pension plans, will receive the full value of their policies with the support of the government.
Holders of individual Executive Premium Annuity (EFPA) poli-cies will receive the value of their principal investment while investors with EFPA policies, other than individuals, will receive shares in the property-holding entities.
The plan also envisages the creation of a new insurance company to take over the insurance business and the creation of separate entities that will own the real estate and other illiquid assets.
Deloitte has said that these property-holding entities will issue bonds to the new insurance company, which will be guaranteed by the Barbados government.
CLICO and sister com-pany British American Insu-rance Company collapsed in 2009.