WILLEMSTAD/PHILIPSBURG:--- The Centrale Bank van Curaçao en Sint Maarten (CBCS), in close cooperation with the Governments of Curaçao and Sint Maarten and with the aim of safeguarding the interests of policyholders and other creditors, has recently made important progress on the ENNIA Group resolution (the "ENNIA Resolution"). Following the signing of an ENNIA Resolution Heads of Agreement by the CBCS and the governments of Curaçao and Sint Maarten on April 11, 2024 (the "Heads of Agreement"), an addendum was agreed upon by the parties on October 9, 2024, further elaborating on aspects of the ENNIA Resolution. This addendum in no way affects the principles set forth in the original Heads of Agreement: there will be no reduction in the policyholders’ terms.
The ENNIA Resolution provides for a restructuring of the ENNIA Group. This is made possible by the emergency regulation applicable to the ENNIA Group, as issued by the Court of First Instance of Curaçao on July 4, 2018. For the sake of completeness, the two main components of the restructuring, as well as other necessary adjustments in the structure and operation of the ENNIA Group, are outlined below:
(1) Creation of a new ENNIA insurance group and partial transfer of insurance liabilities
As part of this process, all necessary preparations will be undertaken in the coming weeks to establish a new ENNIA Insurance Group by January 1, 2025. The new ENNIA insurance group will be headed by the newly formed ENNIA Holding N.V., as the shareholder of the newly formed ENNIA Leven N.V. and the pre-existing companies ENNIA Caribe Schade N.V. and ENNIA Caribe Zorg N.V. (hereinafter, collectively: ENNIA [new]).
The current insurer, ENNIA Caribe Leven N.V., which will remain under emergency regulation, will transfer part of its insurance liabilities to the new entity, ENNIA Leven N.V. The part of the portfolio to be transferred in this way involves the liabilities accrued on the basis of premiums paid by policyholders from July 4, 2018 (at the issuance of the emergency regulation). At the same time, the assets (investments) legally required to back the liabilities to be transferred will also move to ENNIA Leven N.V. Additionally, the new insurance group will have a sustainable ownership and financing structure.
(2) Administration of the remaining insurance liabilities
Insurance liabilities to policyholders accrued from premiums paid by them prior to the issuance of the emergency regulation (July 4, 2018) will remain with ENNIA Caribe Leven N.V. These liabilities to policyholders will in principle be paid in full by ENNIA Caribe Leven N.V.
The above means that certain policies must be divided into two separate policies. The policy split relates to the fact that, pursuant to the Heads of Agreement, part of the existing insurance portfolio will be fulfilled by ENNIA Caribe Leven N.V., while the other, as mentioned under item 1, will continue under a new entity (ENNIA Leven N.V.). This arrangement ensures that no reduction of policyholder rights will be required. To facilitate this split, the Court of First Instance in Curaçao has granted special authorization to the CBCS based on the National Ordinance on the Supervision of the Insurance Industry. Additional information on the implementation of this policy split is available in the ENNIA FAQ.1
In addition to these structural adjustments, several other changes will be implemented in the coming period, while several strategic options are being explored. The main ones are:
• To enable ENNIA (new) to conduct its insurance activities, ENNIA Caribe Holding N.V. will also transfer certain operational assets, including the information systems, to ENNIA (new).
• Current employment contracts with ENNIA Caribe Holding N.V. employees will be terminated, and all employees are being invited to apply for employment with ENNIA (new).
• To avoid confusion between ENNIA (old) and ENNIA (new), the statutory names of ENNIA Caribe Holding N.V. and ENNIA Caribe Leven N.V. will be changed.
• Together with the various entities involved, regulators, and governments, the CBCS will review several strategic options and take the necessary steps for the ENNIA companies in Aruba and the Mullet Bay property in Sint Maarten.
Additionally, it should be noted that the restructuring will not affect the legal proceedings against Parman International, ENNIA’s shareholder, Mr. Ansary, and others. The CBCS and ENNIA (old) remain committed to recovering damages from Parman International (and from Mr. Ansary and others).
Finally, the CBCS will continue to keep all stakeholders duly informed about the progress of the ENNIA Group's restructuring.
Willemstad, November 8, 2024
CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN
