GOVERNMENT’S PLAN to form a new company to replace the failed CLICO International Life Insurance Limited (CIL) could find it difficult to succeed, warns CIL’s judicial manager Patrick Toppin.
He argues that the new entity, named New Life Investment Company Inc (NLICO), needs in excess of $300 million to be properly capitalised to give it any chance of success. Yet, to date, the indication is that Government is initially putting $30 million into it, while taking on the assets and liabilities of CIL.
Toppin charged that if Government went with this plan, the new company would likely end up with similar financial difficulties like CIL.
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