SINT MAARTEN (GREAT BAY) - On December 28, 2023, the Council of Ministers of Sint Maarten officially approved the outline agreement for the ENNIA Resolution, marking a crucial step towards safeguarding the financial well-being of approximately 30,000 policyholders. This comprehensive solution, developed in collaboration with the governments of Curacao and Sint Maarten and the Central Bank of Curaçao and Sint Maarten (CBCS), ensures the continuity of the ENNIA Group's services, including in the realm of life insurance.
In a press release dated December 20, 2023, the public was informed of the technical-level outline agreement reached by the involved parties. The predominant issue addressed by this agreement is the substantial capital shortage at ENNIA, posing a significant threat to the financial stability and the rights of policyholders. Without a viable solution, policyholders faced the prospect of substantial reductions in their pensions, with potential far-reaching social and economic consequences.
Key highlights of the agreement include:
- A controlled wind-down of rights and liabilities of policyholders accrued before the emergency regulation of July 2018 (ECL old) and a partial continuation of ECL for rights and obligations of policyholders accrued after the emergency regulation of July 2018 (ECL new).
- To meet ongoing benefit obligations, the structural deficit in the values of ECL (old) will be partly addressed with funds from the Resolution Fund.
- Annual contributions to the Resolution Fund from the Governments of Curacao and Sint Maarten for 30 years, totaling approximately NAf 30 million and NAf 2.3 million yearly, respectively, as interest-free subordinated loans.
- Annual contributions from CBCS for 50 years, totaling NAf 15 million yearly.
- A capital injection into ECL (new) from the Resolution Fund, funded by the CBCS and guaranteed by both governments based on the ratio of policyholders residing in Curaçao and Sint Maarten.
- Provision for a credit facility by CBCS to the Resolution Fund, guaranteed by both governments, in case annual contributions are insufficient to meet shortfalls.
- Assurance that there will be no need to apply a discount on the insurance policies of ENNIA Caribe Leven N.V. (ECL) for the approximately 30,000 policyholders.
The implementation of this solution is contingent upon approval in accordance with the laws and regulations of Curaçao and Sint Maarten. Guarantees and loans will undergo advisement by Cft and require approval by Parliament.
The Government remains committed to keeping the public informed about the progress and implementation of this crucial resolution.
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