CL Financial
| Industry | Insurance Financial Services |
|---|---|
| Founded | 1993 |
| Headquarters | 41 - 43 St. Vincent Street Port of Spain, TT. |
|
Key people
|
Lawrence Duprey, Chairman & CEO |
| Products | Insurance |
CL Financial – before its financial breakdown that became evident after a liquidity crisis and government intervention in 2009 – was the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean. Founded as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, it was expanded into a diversified company by his nephew Lawrence Duprey. CL Financial then became one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets exceeding US$100 billion.
However, CL Financial experienced a liquidity crisis that resulted in a "bail out" agreement by which the government of Trinidad and Tobago loaned the company funds ($7.3 billion as of December 2010) to maintain its ability to operate, and obtained a majority of seats on the company's board of directors. As of late 2010, the company remained in a tenuous position amid tense negotiations with the government, and as of February 2011, the company's web site (www.clfinancial.com) was no longer functioning.
CL Financial started out as a holding company for Colonial Life Insurance Company (Trinidad) Limited (Clico) in 1993.
In a Trinidad Guardian press release on January 30, 2009, it was announced that the TT Government would "bail out" CL Financial, the parent company of Clico, Angostura and several other local and regional businesses. Key points disclosed were:
During a press conference held later the same day, Central Bank Governor Ewart Williams released a statement revealing that the Bank and the Ministry of Finance had taken control of the assets and liabilities of Colonial Life Insurance Company, Clico Investment Bank (CIB) and Caribbean Money Market Brokers (CMMB). The statement explained that liquidity challenges which CIB had been facing for some weeks came to a head when an unusually high level of withdrawal requests put a strain on available liquid resources. Clico was also facing liquidity problems, to a lesser extent. On January 13, 2009, Clico’s Chairman formally raised the issue of possible financial assistance from the Central Bank.
The statement highlighted the contagion risks that financial difficulties in CL Financial Group could have on the overall financial system of Trinidad and Tobago and the Caribbean region: The Group controls over TT$100 billion of assets in at least 28 companies located throughout the Region and the world. The Group’s financial interests cover several industry sectors including banking and financial services, energy, real estate and manufacturing and distribution. The four largest financial institutions in the Group manage assets of over TT$38 billion, over 25 percent of the country’s GDP. The Group’s holdings include the British American Insurance Company Limited, one of the main insurance companies in the Eastern Caribbean.
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