Central Bank Governor Jwala Rambarran yesterday confirmed that the Colonial Life Insurance Company Ltd (CLICO) was up for sale.
Further, the Central Bank was in the market for a buyer.
In a press statement issued yesterday, Rambarran explained: “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 said to achieve this objective, the insurance portfolio is being evaluated by an independent valuation company.
“An independent actuarial firm has, therefore, been engaged to value CLICO’s traditional business for this purpose and the exercise is still in progress,” he said.
“Subsequently, the Central Bank will conduct the process for the sale and transfer of CLICO’s traditional insurance portfolio on a transparent, open market basis. The bank has neither engaged with any prospective buyers nor made any decision on the structure of the portfolio transfer,” he said.
Rambarran noted that pursuant to Section 44D of the Central Bank Act, the Central Bank was in control of CLICO which started on February 13, 2009, in order to safeguard the interests of policyholders and creditors and to prevent disruption, substantial damage or impairment of our financial system.
“The Central Bank is the only entity empowered to restructure the business or undertakings of CLICO, in accordance with the provisions of the Act,” he said.
The Government said it has spent close to $25 billion since it acquired the cash-strapped insurance company from Lawrence Duprey in 2009.