Policyholders may lose 50%

Dawne Parris,

Added 04 November 2012

jordan

CLICO POLICYHOLDERS will lose out on more than half of their investment under the plan recently proposed by judicial manager Deloitte Consulting Limited. Details of the $400 million loss are contained in the judicial manager’s 13-page update to the High Court,  a copy of which the SUNDAY SUN has obtained. “All policyholders, traditional and EFPAs [executive flexible premium annuities] would have their liability of $837 million written down to $441 million, representing a loss of approximately $400 million,” stated the document,  which indicated that  the write-down amount represented the current value  of CLICO International Life  (CIL) assets – $288 million  of which are in Barbados. “The loss would be applied equitably across all policyholder types so that the restructured traditional business would  have total liability of $177 million  and the EFPA would have total liability of $264 million.”

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