Stabroeknews, November 6, 2009: Cleaning up the CLICO mess: OECS seeking to salvage regional subsidiary

The governments of the Organization of Eastern Caribbean States (OECS) have opted to pursue a plan to salvage British American Insurance, the main subsidiary of the ill-fated CL Financial (CLICO) [sic] that could restore to policy holders and shareholders at least a part of the millions of dollars in losses suffered when the company’s Caribbean-wide financial empire collapsed spectacularly earlier this year.

Note: CL Financial is actually the “parent” of CLICO.

Jamaica Gleaner: ECCU plans takeover of British American

Earlier this year, the regulators in the Eastern Caribbean Currency Union (ECCU) and The Bahamas intervened in the operations of British American and applied to the courts in several jurisdictions to appoint judicial managers.

The key findings of the report by the judicial managers indicate that the liabilities of BAICO branches in the Eastern Caribbean total EC$1.05 billion (US$380.8 million) of which EC$842.4 million (US$312 million) are annuities or investment contracts.

The report also showed that BAICO is insolvent and that, as of the end of June this year, it had a deficit of EC$775 million (US$287 million).