Anguilla has joined insurance regulators in the OECS in intervening in British American Insurance Company (BAICO) in an effort to safeguard the interest of policyholders and investors.

A press release issued by the island’s Financial Services Commission, dated August 5, stated that on Friday, 31 July, 2009, the High Court ordered the appointment of Mr. Claudel Romney of KPMG as Administrator for the Anguilla branch of BAICO. The order followed a petition to the Court by the Anguilla Financial Services Commission.

The rest of the press release is as follows:

“The petition was heard by Honourable Madam Justice Tan’ania Small Davis. The Commission was represented by Hon Dr Wilhelm Bourne, Attorney General of Anguilla, and Mr. Niguel Streete, Director of the Commission.

“This intervention by the Commission is fully supported by the Government of Anguilla and is consistent with a recent decision of OECS Ministers of Finance to act collectively to address the BAICO matter. Judicial Managers or Administrators have also been appointed in Antigua and Barbuda, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.

“The OECS Ministers of Finance have adopted four guiding principles in respect of BAICO, which were endorsed by the Monetary Council at its meeting in Dominica on 10 July 2009: To keep BAICO as a going concern in a form to be determined; to craft a solution that is regional in nature; to protect, as far as practicable, the interests of policyholders and investors; and to ensure that BAICO does not become a systemic risk to the ECCU financial system.

“A Ministerial Sub-Committee on Insurance is in place to provide oversight on this important matter. The Sub-Committee comprises: Prime Minister Ralph Gonsalves of St. Vincent and the Grenadines (Chairman), Prime Minister Roosevelt Skerrit of Dominica, Minister Nazim Burke of Grenada and Minister Timothy Harris of St. Kitts and Nevis. This Committee is working closely with the regional regulators.

“The Administrator is under the direction of the Court and has now taken control of all operations of BAICO Anguilla. The Court has directed that an initial report be submitted in fourteen days and a detailed report in sixty days with specific recommendations for the way forward.

“The key task of the Administrator is to take all actions necessary to safeguard the interest of all policyholders and investors in BAICO Anguilla.

“The Commission would like to thank policyholders and investors for the patience exercised to date. Given the efforts undertaken so far to resolve this difficult issue, further patience is required of policyholders and investors to allow the Administrator to take control of the company and to allow the Governments and the regulators time to craft a regional solution to minimize the risk to all policyholders and investors.”

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