Thousands of policyholders of CLICO International Life Insurance Limited and British American Insurance Company (BAICO) will have to wait a bit longer to receive their long-awaited pay out.
A sales and purchase agreement, which would see life and annuity policies being transferred to Sagicor Life, was scheduled to take effect today. However, it appears that process is now on hold.
“The life and annuity policies were to be transferred to Sagicor and they would have been converted into Sagicor policies, and over the next couple weeks then you would have had the judicial manager paying out those claims . . . like death claims and policies that would have matured,” Chairperson of the Barbados Investors and Policyholders Alliance (BIPA) June Fowler said after the matter came up for hearing in the High Court this morning.
She said the process was delayed because Sagicor has several concerns, including “the recent downgrade, and also they have a concern for the likelihood of a credit event in the near future”.
Fowler explained that the financial institution was seeking to head back to the negotiation table with the judicial manager and the Ministry of Finance, in a bid to get the matter settled.
“So it would appear that everything now is going to be put on hold until this situation with Sagicor is resolved,” she said.
The BIPA head said the court had adjourned the matter until July 3 when another update is expected to be provided. However, if a solution is reached before then, the parties would
return to court.
Fowler expressed disappointment at the delay.
“It is going to create, and has been creating, some levels of anxiety for the policyholders. It is not something that we were expecting because from the way things were going, we were under the assumption that this was a done deal and now for this to come at the 12th hour really is a disappointment for the policyholders,” she said.
However, Fowler is hopeful that the issues will be ventilated within the next 30 days.