Restrictions imposed on Gulf Insurance Ltd

August 31, 2012 11:31 AM

NEVIS--The Central Bank of St. Kitts and Nevis has imposed restrictions on Gulf Insurance Limited, this according to news sources in Nevis.

The move has prompted the intervention of that country's Registrar of Insurance to protect policyholders or potential policyholders. Public notices in Nevis indicate that Gulf did not have adequate re-insurance for its property portfolio.
 
This protection is against the risk of the registered insurance company's inability to meet its liabilities and have the insurance company deemed insolvent. The restriction went into effect as of August 1, 2012, and prohibits the company from making any investments or raising any new capital investments.
 
Additionally, Gulf was instructed to adhere to the following guidelines: prepare and submit second quarter financial reports for the period ending June 30, 2012 as well as audited financial statements for the year ending March 31, 2012.
 
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; refrain from issuing any new policies to new policyholders, only premiums for renewals of existing policies can be accepted.
 
However, The Daily Herald understands that Gulf has protested this action by the Central Bank of St. Kitts and Nevis. Gulf is said to be currently in the process of recovering from certain setbacks from late 2011. With a new Board of Directors, it is understood that steps were made to prepare and present all Central Bank requested financial reports of 2009, 2010 and 2011. Reportedly all these filings were made early this year with fiscal year 2011-2012 pending. This, however, could not be confirmed with Gulf's corporate headquarters in Trinidad.
 
Information obtained on Thursday, suggests that Gulf has a valid re-insurance treaty in place and the company has no problems in settling their claims with the portfolio still in place, and existing business is as usual being renewed. Gulf has been assuring policy holders that their insured property/business is well secured and placed with A-rated re-insurers.

(The Daily Herald)