The Central Bank of Liberia (CBL) places five insurance companies here under Provisional Administration (PA) to avoid total collapse of those institutions.
According to a press release, companies affected include the African Insurance Corporation of Liberia (AICOL); Capital Express Assurance Company (CEAC); Continental General & Life Insurance Corporation (CGLIC); Family Dollar Universal Insurance Services Inc. (FDUIS); and the Global Trust Assurance Company (GTAC), respectively.
The move by the CBL is in keeping with the authority vested in it by the Insurance Act of 2013 and consistent with Sections 10.10 and 10.12. It followed an assessment by the Bank of the capital positions of the five companies for the period ended March 2018. The assessments show that the companies have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance companies since the first quarter of 2017.
The CBL says Provisional Administrators (PAs) placed in these institutions are empowered to take all necessary actions in preserving business/assets of the companies; and to protect the interests of policyholders. Action on behalf of, or for the account of the affected companies that occur without the prior approval of the Provisional Administrators after June 15, 2018, shall be void and of no effect.
The CBL assures the general public that the actions are in the best interest of the public and are aimed at promoting the safety and soundness of the Insurance Industry and the interests of the policyholders. The action will preserve the business and the assets of these troubled insurance companies and will protect the interests of policyholders or other customers of these insurers.
Meanwhile, a new Governor and Acting Governors of the CBL Board of Governors have been inducted. Those inducted are Mrs. D. Sheba Brown, Governor of the Board of Governors; Acting Board Governors, Mr. Richard Dolley, and Mrs. Elsie Dossen Badio. The ceremony was held Thursday, June 14, at the head offices of the Bank in Monrovia.
Executive Governor, Milton A. Weeks, in a statement, congratulated the new Board Members on their accession to the Board of Governors. Governor Weeks underscored the important role the Board plays in shaping the policy direction of the CBL. The Board’s work, goes beyond policymaking into oversight of the CBL’s functioning, through Board Committees, particularly the Audit and Investment Committees.
Governor Weeks assured the newly inducted Board Members that they will see no change in this stance, saying, “Only my continued effort as Chairman to foster a culture of collegiality, productivity and continuous learning…”
He urged the Board to join him in shaping that culture, which can only set a positive example to the staff of the core values that the Board has set for them: integrity, efficiency, innovation, inclusiveness, teamwork, transparency and fairness.
Responding on behalf her colleagues, Governor D. Sheba Brown, thanked President Weah for their preferment and pledged their unflinching support to his vision. She described their appointment to the Board of Governors as a testimony of years of experience from the National Bank of Liberia to the Central Bank of Liberia, and the vision of President Weah to continue to appoint individuals with high level of experience, dedication, commitment and patriotism who will promote his Pro-Poor Agenda.
Governor Brown expressed the hope that their presence on the Board will generate discussions and provide viable policy options that would assist to resolve the numerous economic challenges facing the country. She noted that monetary policy alone is not sufficient to bring about the desired economic growth. “We must carefully balance monetary and fiscal policy measures. Side by side, with economic stimulus measures, we must intensify our surveillance and give guidance to the operations of our financial institutions,” the newly inducted CBL Board Governor emphasized.
The occasion was witnessed by Senior Executives of the Central Bank of Liberia as well as friends and family members of the newly inducted CBL Board Members. A third Acting Governor of the Board of Governors of the CBL, Mr. Nathaniel Patray, is to be inducted into office today, Monday, June 18th. Press Release