Update on CLICO Resolution

Author(s): Central Bank Of Barbados

Created 03 May, 2018
Categories General Press Release
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The Government of Barbados established a holding company, New Life Investment Company Inc. (NLICO) and its insurance operating subsidiary Resolution Life Insurance Company (ResLife), with the approval of the court appointed Judicial Manager, to acquire the CLICO portfolio. Government has also approved the transfer of the life insurance business of BAICO to Sagicor Life Inc.

The following securities were issued on January 1, 2018 in relation to CLICO:

Security

Value

% of GDP

Demand notes issued by the Government to ResLife, the interest from which would assist with the payment of the statutory fund shortfall as well as CLICO’s life insurance and other liabilities.

$220 million

2.3%

Bonds issued by NLICO to ResLife in exchange for the restructured ten year fixed annuities of the Executive Flexible Premium Annuity policyholders.

$126 million

1.3%

Bonds issued by NLICO to CLICO for the transfer of its real estate assets to NLICO. These bonds subsequently passed to ResLife when the assets of CLICO were transferred to that entity.

$34 million

0.4%

 

Further, the following securities in relation to BAICO were issued April 2018:

Security

Value

% of GDP

Transfer of the life insurance business of the British American Insurance Company Ltd. (BAICO) to Sagicor Life Inc.

$93 million

1.0%

Preservation of the pension plans of BAICO employee

$9 million

0.1%

 

 



Copyright 2018 by Central Bank of Barbados