Big Clico payout on March 31
Chairman Euric Bobb….missing in action.
Central Bank Governor Ewart Williams begs for patience. However, people want their money.
Surely, Clico cannot afford more bad news about its finances- particularly when it comes from a High Court judge.
And the beleagured insurance company and the Central Bank, its financial white knight, sprang into action yesterday to convene a press conference to beg for some patience from its policyholders.
Apparently as a damage control measure after the bad publicity, Clico now will be paying out amounts of less than $100,000 of matured policies, pension funds and other securities paid by March 31, according to Acting CEO Carolyn John.
She said that arrangements will be made to pay larger amounts in tranches.
Ms John said that the legal letter from Justice Carlton Best seeking payment of $56,000 was received yesterday and revealed that there were several such letters from other customers.
Central Bank Governor Ewart Williams appealed to Clico’s customers to have some patience stating: “We recognise that policyholders have legal rights and that policyholders could demand their funds immediately but there are costs of enforcing these rights and the reality is-the unfortunate reality is- that if all these policyholders seek to exercise these rights we all are going to be worse off.”
Governor Williams pointed out that Clico had assets which could be monetised but the company would suffer significant losers since the value of shares in companies like MTHL had declined.
The Bank has pumped some $5 billion into Clico but apparently that has gone into a black hole to satisfy some debts. The company has not been writing new business and most people are apparently surrendering their policies and demanding cash surrender value payments.
The trouble is that Clico has some 200,000 policyholders and despite assurances around September by its Chairman Euric Bobb that the company would have recovered from its financial woes by December, no such thing has happened.
What has, in fact, occurred is a flight of some top executives.
Bobb has been missing in action. His upbeat approach has not matched the reality of tight money, customers wanting their money after reports of bigwigs being paid large sums and to make matters worse harried staff fleeing to what they perceive as greener or safer pastures.