On Thursday 23rd August, a release from the regulatory body confirmed that the Registrar of Insurance has intervened into the affairs of Gulf Insurance Limited (GIL).
It said that this intervention was necessary to:
(i) Protect policyholders or potential policyholders against the risk of the registered insurance company’s inability to meet its liabilities.
(ii) Have the insurance company deemed insolvent.
According to the Registrar, the company did not have adequate reinsurance for its property portfolio.
As a consequence, certain restrictions on the operations of Gulf Insurance Limited in St. Kitts have been imposed:
As at August 01, 2012 Gulf Insurance Limited shall refrain from making any investments (or raising any new capital investments). In addition, the company shall adhere to the following guidelines:
(i) Prepare and submit second quarter financial reports for the period ending 30th June, 2012 as well as audited financial statements for the year ending 31st March, 2012.
(ii) Refrain from repatriating any funds from the company’s accounts within the Federation of St. Kitts-Nevis, without the approval of the Registrar of Insurance.
(iii) Refrain from issuing any new policies to new policyholders (premiums for renewals of existing policies only can be accepted).