Guyana’s Commissioner of Insurance, Maria van Beek has secured an order from the High Court to place CLICO (Guyana) under judicial management prior to winding up of the company.
The decision came following Tuesday’s move by the Bahamas Supreme Court to order the liquidation of CLICO (Bahamas). CLICO (Bahamas) held 51% of the assets of CLICO (Guyana) at the end of 2007.
The insurance commissioner’s petition was filed late yesterday before Chief Justice Ian Chang and the order was entered this afternoon.
Chief Justice Chang ordered, after reading the petition by van Beek and the affidavit in support, that leave be granted to van Beek to present a petition under section 67 (1) of the Insurance Act 1998 and that upon the filing of the petition that CLICO Life and General Insurance Company (South America) Limited be placed immediately under judicial management until further orders by the court.
It was further ordered that van Beek be appointed judicial manager for the purpose of judicial management. The matter is returnable for March 2, 2009.
The move comes after weeks of speculation that CLICO (Guyana) was heavily exposed to the financial woes which engulfed its parent company Trinidad-based C L Financial and its subsidiaries.
The final straw came after the liquidation of CLICO (Bahamas). Hundreds of policyholders and investors with CLICO (Guyana) will now have to await the results of the judicial management process.
The Guyana National insurance Scheme has $6B with CLICO (Guyana).
President Bharrat Jagdeo was scheduled to hold a press conference this afternoon on the matter.
(More details in tomorrow’s issue.)