Policy holders here worried about their investments in failed insurance company, CLICO, were on Friday updated on the progress being made by court appointed Judicial Manager Oliver Jordan of Deloitte Consulting Ltd.
Some local policy holders have formed a group to press for the process to be speeded up to allow them to recoup their investments or as much of it as they can get.
Jordan told reporters at a news conference in Roseau on Friday that a CLICO restructuring plan was being worked on, and the intention was to conclude by June/July of this year, the process involving CLICO branches in Barbados and the Eastern Caribbean which kicked off in April of last year.
He said funding sought from regional governments to address the CLICO problem has not been forthcoming, and efforts are being made to find an investor or investors to purchase CLICO as part of the restructuring process.
According to the judicial manager, two insurance companies have shown interest, and efforts are being made to cement their involvement in the process.
Dominican investment in CLICO has been put at $70-million, but it remains unclear how much of those funds local policy holders will be able to recoup.
Jordan wants whichever investor who comes on board to buy the company “as a whole”.
“The reason for that is because there is an uneven distribution of assets across the region. So for example in Dominica where we have $70 million of policy holder liabilities, we don’t have $70 million of hard assets,” he explained.
The judicial manager says there are assets due from other CLICO entities but not physical buildings or land that “we could say we could secure and ring-fence those for the benefit of Dominica’s policy holders”.
He has explained further that restructuring as a whole instead of individual branches would facilitate the Dominica policy holder receiving”the same benefit as the Barbados policy holder or a St Lucia policy holder”.
Policy holders expecting hard cash by June may however be disappointed, because Jordan and his team are hoping they will agree to be part of the new arrangement.
He said new investors might not agree to take over CLICO if the policy holders plan to abandon the company en masse.
Payments are likely to be made when the restructuring process is completed, he said, but that might be done on a staggered basis.
“The reality is we cannot say what the final position will be for our policy holders because it really is subject to the kind of offers that we get from an investor,” Jordan told reporters.
However it is likely, he indicated, that they could end up getting 60 percent and upwards of the funds they put into the company.
BAICO – British American Insurance Company policy holders have a separate judicial manager, and are expected to be updated on their own situation by that court appointed official.