The restructuring of the ENNIA group
On 16 September 2021, The Central Bank of Curaçao and Sint Maarten (CBCS) and ENNIA announced the sale of Banco di Caribe. We would like to take this opportunity to inform you about the current situation and the restructuring of the ENNIA group.
The sale of Banco di Caribe to United Group Holdings BV (United) is a significant step in the financial recovery of the ENNIA group. The earnings, which will be paid in cash, will directly be made available to ENNIA Caribe Leven NV at the time of the sale. These earnings will contribute to a lower risk profile and the optimization of the investment portfolio for the benefit of the policyholders. In addition, after the sale the ENNIA group will be able to fully focus on its insurance business.
The sale is part of a broader restructuring plan for the ENNIA group by the CBCS.
The restructuring will be executed in phases on a group level and in a controlled manner with the goal to make ENNIA’s insurance businesses solvent in the interest of the joint policyholders. The solvency is an indication to which degree a business can meet its long-term payment obligations.
Meanwhile, the solvency of ENNIA Caribe Schade NV and ENNIA Caribe Zorg NV is up to par again. These businesses are thus fully able to meet their obligations and are functioning normally. Taking the group-wide approach of the restructuring into account, release of these entities from under the emergency measure is being assessed.
The restructuring of ENNIA Caribe Leven NV is also progressing. The CBCS and ENNIA are working to strengthen the financial position of the insurer in multiple ways. Among others, a prudent investment policy has been developed with the aim to support the long-term obligations of the insurer and an independent investment committee has been appointed with the goal to invest the incoming premiums in accordance with the renewed investment policy.
Furthermore, CBCS, on behalf of ENNIA, has initiated a civil liability lawsuit against the (ultimate) shareholders and former board members of the ENNIA group following a financial review of the entire company, with the aim to recover as much as possible of the financial damage and solvency shortage. The expectation is that the General Court will render a verdict at the end of this year or the beginning of next year.
The main focus of the restructuring process is long-term solvency, as the short-term liquidity of the companies is already up to par. With that, ENNIA is able to meet all its payment obligations, such as transferring monthly payments to the retirees and covering the insured damages.
In case you have questions, please e-mail us at firstname.lastname@example.org. We will try to answer your questions as quickly as possible. As soon as relevant developments take place, we will notify you.
Here you will find the press release of ENNIA Caribe Holding NV of 16 September 2021.