Clico International Life – Information Site

Barbados: Friday 16 December, 2011 – Deloitte Consulting Ltd. (represented by Oliver Jordan and Patrick Toppin) the Judicial Manager of CLICO International Life Insurance Limited (“CIL” or “the Company”) has implemented a number of initiatives at CIL in the interest of strengthening operational control and cost savings.
These initiatives were the result of an in-depth review of CIL’s operations, designed to increase efficiencies and to better position CIL for recovery and/or acquisition as a going concern. This review was also made in the context of declining revenues over the last few years, partly due to the inability to write new insurance business in the territories in which CIL is represented.
As a result of this review, a new organisational structure becomes effective from 16 December, 2011. The following changes, as related to management and agents, have been put into effect:
• The role of the existing President has been re-focused to more directly support the restructuring process and the retention of premium income. The position has been re-classified as that of ‘Head of Insurance Operations’.
• The services of the Vice President of Finance, the Vice President of Sales and the Senior Accounting Assistant have been terminated on the basis of redundancy.
• Pending further changes, a senior manager at Deloitte will oversee the Human Resources, Finance and IT departments on behalf of the Judicial Manager.
Additionally, on Friday 16 December, 2011 it was announced that effective 29 February 2012, the arrangements with regards to sales agents will be revised to eliminate unnecessary payments and to focus their efforts on retention of premium income for CIL.
In total, all measures taken would result in substantial cost savings for CIL.

Barbados: Friday 02 December, 2011 – Deloitte Consulting Ltd. (represented by Oliver Jordan and Patrick Toppin) the Judicial Manager of CLICO International Life Insurance Limited (“CIL“ or “the Company”) recently appeared before the High Court of Barbados to provide an update on its consultations with policyholders, regulators and regional governments and also to obtain Court sanction for the next phase in the process of restructuring the Company.
During an update to the court on Thursday 01 December 2011, the Judicial Manager (“JM”) informed the court of the following:
• That during the past two months, the JM had engaged in consultations with policyholders, regulators and regional governments in order to present its findings on the financial condition of CIL and on the alternative options for restructuring.
• That during these consultations the JM was able to garner and assess the views of the stakeholders and the level of support for the restructuring options presented.
• That one of the key views emerging from the consultations was that for policyholders and regulators to have support for and confidence in any new entity which emerges from CIL, it will be necessary for the entity to demonstrate adequate financial capacity and also to have an effective corporate governance structure. In addition policyholders expressed deep concerns over delays in access to their funds given their immediate financial needs.
Based on the foregoing, the Judicial Manager sought and received Court sanction that immediate steps be taken to identify a suitable investor with which to associate in the establishment of a new company. Any potential investor will have to demonstrate the depth of management and financial capacity necessary to provide greater confidence to policyholders and regulators as it relates to the viability of any new entity which may emerge from the existing operations of CIL.
The Judicial Manager acknowledges the concerns of policyholders that the restructuring of CIL be completed as matter of urgency and will therefore seek to expedite the investor identification process.
The Judicial Manager also advised the Court that the first phase of the forensic audit of CIL is substantially complete and would be tabled in the very near future.
Any and all queries concerning policies can be directed to the company via established lines of communication. Additionally, the Judicial Manager has established a dedicated email address of clicojudicialmanager.bb@deloitte.com for direct communication concerning the Judicial Management process.

Barbados: Thursday October 13, 2011 – The Judicial Manager of CLICO International Life Insurance Limited (CIL), represented by Oliver Jordan and Patrick Toppin, have recently completed extensive consultations with policyholders in Barbados and in Grenada, St. Vincent and the Grenadines, Dominica and Antigua.

The meetings took place between Monday September 26, 2011 and Friday October 07, 2011.

During these consultations, the Judicial Manager explained and obtained feedback on the restructuring option highlighted in its Report of July 28, 2011 as well as on the additional four restructuring options, based on possible government funding, as reflected in its Addendum to the Report dated September 15, 2011.

Having completed the consultation process and noted the views, concerns and suggestions of policyholders, the Judicial Manager will review its previous recommendations and propose such additional or alternative actions deemed necessary.

As such, the Judicial Manager will be returning to Court in early November to report on the results of the consultative process and its subsequent review. After presenting this report to the Court and obtaining its guidance, further communications will be issued to all policyholders

In the interim, it should be noted that the operations and coverage of CIL’s existing policies remain in effect subject to premiums on such policies continuing to be paid by policyholders. These premium payments should be made in the normal manner to the company.

Any and all queries concerning policies can be directed to the company via established lines of communication. Additionally, the Judicial Manager has established a dedicated email address of clicojudicialmanager.bb@deloitte.com  for direct communication concerning the Judicial Management process

Dominica- October 7, 2011: On October 7, 2011, the Eastern Caribbean Supreme Court in Dominica officially recognised the Barbados High Court Order of April 14, 2011, which appointed Deloitte Consulting Limited (DCL), acting through Messrs Oliver Jordan and Patrick Toppin, as Judicial Managers of CLICO International Life Insurance Limited (CIL).

Therefore, with effect from that date, Jordan and Toppin are the official Judicial Managers of CIL’s branch operations in Dominica.

The Judicial Managers wish to stress that the operations and coverage of the Company’s existing policies remain in effect, subject to premiums on such policies continuing to be paid by policyholders. 

The Company’s branch office in Dominica remains open and policyholders can continue to make premium payments in the normal manner.  All enquiries regarding claims or policies should be directed to the Company.

The Judicial Managers will issue further information in due course.

Barbados: Wednesday September 21, 2011 – A restructuring plan for CLICO International Life Insurance Limited (CIL) was tabled in the High Court of Barbados yesterday by the company’s Judicial Manager, Deloitte Consulting Limited (represented by Oliver Jordan and Patrick Toppin).
The Judicial Manager has recommended several restructuring options believed to be most advantageous in the interest of the Company’s policyholders with each option having its own funding implications. As such, the Judicial Manager will now engage in discussions with the governments of Barbados and the Eastern Caribbean to confirm available funding. Upon confirmation of available funding the Judicial Manager will seek final approval of the Court for the restructuring of CIL.
The High Court of Barbados also approved the recommendation of the Judicial Manager to commission a forensic audit given that a high percentage of the company’s stated assets could not be verified.
The Judicial Manager will shortly commence the hosting of policyholder forums to provide policyholders with a comprehensive update on the financial condition of CIL and the various options considered for restructuring. These forums, scheduled to commence next week, will be held in Barbados and in all the Eastern Caribbean territories where CIL has a presence. Individual letters will also be mailed to all policyholders in Barbados and the Eastern Caribbean providing policyholders with the potential impact on their policy of the alternative restructuring options.
In the interim, it should be noted that the operations and coverage of CLICO International Life Insurance Limited’s existing policies remain in effect subject to premiums on such policies continuing to be paid by policyholders. These premium payments should be made in the normal manner to the company.

Any and all queries concerning policies can be directed to the company via established lines of communication. Additionally, the Judicial Manager has established a dedicated email address of clicojudicialmanager.bb@deloitte.com for direct communication concerning the Judicial Management process.

Antigua; September 14 , 2011 : On September 12, 2011 the Eastern Caribbean Supreme Court in the High Court of Justice, Antigua and Barbuda appointed Oliver Jordan and Patrick Toppin of Deloitte Consulting Limited in Barbados as the Judicial Managers of CLICO’s International Life Insurance Limited’s Branch Operations in Antigua and Barbuda. Wilbur Harrigan of Pannell Ker Foster in Antigua has also been appointed to act as the local agent for the Judicial Managers.

Effective with the appointment, the Judicial Managers have assumed control of the affairs of the Branch and have become immediately responsible for assessing the financial position of the Branch. An Interim Report is due to the Court within 30 days and 90 days thereafter a restructuring report in the interest of all policyholders will be submitted.

Deloitte Consulting Limited acting through Messrs. Jordan and Toppin was appointed as the Judicial Managers of CLICO International Life Insurance Limited’s parent company in Barbados on April 14, 2011 and has since met all reporting deadlines as set by the High Court of Barbados.

The Judicial Managers wish to stress that the operations and coverage of the Company’s existing policies remain in effect, subject to premiums on such policies continuing to be paid by policyholders. 

The Company’s branch office in Antigua and Barbuda remains open and policyholders can continue to make premium payments in the normal manner.  All enquiries regarding claims or policies should be directed to the Company.

The Judicial Managers will issue further information in due course.

CLICO International Life Insurance Limited (CIL)
Communication to Policyholders
August 2011

REPORTS OF THE JUDICIAL MANAGER

On April 14, 2011, the Supreme Court of Barbados (“the High Court”) appointed Deloitte Consulting Ltd. (“Deloitte”) acting through Messrs. Oliver Jordan and Patrick Toppin as Judicial Manager of CLICO International Life Insurance Ltd. (the “Company” or “CIL”) pursuant to Section 57 of the Insurance Act of Barbados (the “Insurance Act”).

On April 29, 2011 the High Court provided further directions to the Judicial Manager including the stipulation that it should file an Interim Report to the Court within 30 days of that date. The Interim Report was filed with the High Court of Barbados on May 27, 2011 and presented to the High Court on June 22, 2011. In the Interim Report a recommendation was made for a forensic audit and this matter is still to be determined by the High Court.

The High Court has also given its consent for the Interim Report to be made available to policyholders and the public. The report is currently available for viewing, subject to appointment, at the offices of the Financial Services Commission in Barbados. Arrangements are also currently being finalised to facilitate viewing of the Interim Report in other jurisdictions in which the Company operates.

CIL operates branch operations in eight countries in the Eastern Caribbean. The following is a summary of Judicial Management appointments :
Antigua , None appointed
Anguilla,  Deloitte Consulting Ltd.
Dominica , None appointed
Grenada,  Deloitte Consulting Ltd.
Montserrat,  None appointed
St. Kitts & Nevis , PKF
St. Lucia , PKF
St. Vincent & the Grenadines,  Deloitte Consulting Ltd.

These Judicial Managers have all submitted Interim Reports to the Courts in their respective jurisdictions.

On July 28, 2011 the Judicial Manager in Barbados submitted its Final Report to the High Court setting out its findings and recommendations. That report has not yet been heard by the High Court.

The Judicial Manager has received approximately 30 letters and a number of calls requesting access to the Final Report or an executive summary of the report. We draw attention to section 61 (3) of the Insurance Act of Barbados which states that “The report or a copy of the report shall be open for inspection by any person during official hours, at the registry of the court in which the report is filed or at such place as the Supervisor determines”. The Judicial Manager is therefore not authorised at this time to distribute either the contents of the Final Report or an executive summary. We assure policyholders and other interested parties that as in the case of the Interim Report, we will seek to secure approval for distribution of the Final Report.

CIL ADVISORY COMMITTEE

In July 2011 a CIL Advisory Committee was established in recognition of the significant risk to the region’s financial stability posed by the difficulties of the Company and the consequent need for a regional solution.

The composition of the CIL Advisory Committee is as follows:

Mr. Timothy Antoine (Co-Chair),Grenada,Chairman of the ECCU Technical Core Committee

Dr. DeLisle Worrell (Co-Chair),Barbados,Governor of the Central Bank of Barbados

Mr. Calixte Leon,St. Lucia, Chairman, ECCU Technical Committee of Regulators

Ms. Margaret Sivers,Barbados,Permanent Secretary (Ag.) Ministry of Finance in Barbados

Meetings of the CIL Advisory Committee also include:

• Mr. Oliver Jordan and Mr. Patrick Toppin of Deloitte Consulting Ltd. – Judicial Manager of CIL’s head office in Barbados
• Mr. Richard Surage of PKF – Judicial Manager of CIL’s branch operations in St. Lucia
• Mr. Omax Gardner of PKF St. Kitts – Judicial Manager of CIL’s branch operations in St. Kitts & Nevis
• Ms. Desiree Cherebin, Consultant to the Central Bank of Barbados

The terms of reference of the CIL Advisory Committee include providing advice to all the Judicial Managers on the options and possible resolution strategies given the systemic risk posed to the Barbados and ECCU financial systems by the financial difficulties of CIL.

The CIL Advisory Committee is currently working closely with the Judicial Managers with a view to developing, where possible, a regional approach for the recommended course of action for CIL. This process is ongoing and further communication will be issued in the near future to all policyholders in Barbados and the Eastern Caribbean.

We thank policyholders for their patience and understanding as the Judicial Managers work expeditiously to obtain approval and to implement a resolution strategy that is in the interest of all CIL policyholders.

Published by : Deloitte Consulting Limited.

Barbados: Thursday July 28, 2011 – The restructuring plan for CLICO International Life Insurance Limited has been filed in the High Court of Barbados by the company’s Judicial Manager, Deloitte Consulting Limited as represented by Oliver Jordan and Patrick Toppin.

The filing of the plan is in keeping with Section 5 of the ‘Amended Order for Appointment of a Judicial Manager’ of April 29, 2011which stated that -

The Judicial Manager shall provide an interim report to this Honourable Court on the operations of the Company within 30 days hereof and shall also provide a report to this Honourable Court within 90 days of its appointment pursuant to Section 61(1) of the Insurance Act stating which of the following courses is most advantageous to the general interests of the policy-holders of the Company:

(a) The transfer of all or any part of the insurance business of the Company to some other insurance company in pursuance of a scheme to be prepared by the Judicial Manager and annexed to the report in accordance with the Insurance Act;

(b) The carrying on of its business by the Company either unconditionally or subject to such conditions as the Judicial Manager may suggest;

(c) The winding up of the Company; or

(d) Such other course as the Judicial Manager considers advisable.

The Judicial Manager has recommended a course of action believed to be most advantageous in the interest of the Company’s policyholders and will now await its approval by the Court.

The Judicial Manager filed its Interim Report to the Court on May 27, 2011 and with today’s filing has now met all of the timelines for reporting as established by the Court.

The Judicial Manager will continue to provide timely updates to policyholders as the judicial management process advances.

In the interim, it should be noted that the operations and coverage of CLICO International Life Insurance Limited’s existing policies remain in effect subject to premiums on such policies continuing to be paid by policyholders. These premium payments should be made in the normal manner to the company.

Any and all queries concerning policies can be directed to the company via established lines of communication. Additionally, the Judicial Manager has established a dedicated email address of clicojudicialmanager.bb@deloitte.com for direct communication concerning the Judicial Management process.