The controllers of BAICO Cayman, Simon Whicker and Kris Beighton of KPMG, have announced that they concluded an arrangement with Island Heritage Insurance, last week, that will ensure that all BAICO Cayman's existing property insurance policyholders continue to have property insurance cover in place at this high risk time of year.

Under the arrangement, all existing property insurance policyholders of BAICO Cayman have been offered new property insurance cover by Island Heritage Insurance on substantially the same terms as they had, previously.

This swift action was taken following the Controllers being informed on Monday, September 21 that a substantial element of BAICO Cayman's property reinsurance cover had been cancelled by a major reinsurer. This meant that BAICO Cayman was no longer able to offer effective property insurance. In light of the potential exposure to BAICO Cayman and, in turn, to its policyholders, the Controllers took immediate steps to protect policyholders' interests.

Under the terms of BAICO Cayman's property insurance policies, policies may be cancelled by BAICO Cayman or policyholders by giving seven days' notice. Letters were sent to all BAICO Cayman's property insurance policyholders, last week, explaining the decision to cancel their insurance and providing them with instructions for continuing property cover with Island Heritage Insurance.

In addition, Policyholders' agents are continuing to contact all Policyholders to explain the details of the arrangement that has been put in place. In order to receive immediate property cover from Island Heritage Insurance, all Policyholders need to do is to visit either the BAICO Cayman offices or the Island Heritage Insurance offices, where they will receive immediate cover upon signing a new policy and paying the first instalment of their premium. Should Policyholders be due a refund in respect of any unused portion of their premium paid to BAICO Cayman, this will be repaid to them by BAICO Cayman.

Anyone who holds a property insurance policy with BAICO Cayman who has not yet acted is urged to contact their local agent or the BAICO Cayman office, immediately.

Kris Beighton, Joint Controller said "The difficulties arising from BAICO Cayman's reinsurance situation on the property book meant we had to expedite a substitution process to an alternative insurer for this line of business to prevent significant exposure to our policyholders. We're obviously delighted that, through our working relationship with

Island Heritage Insurance and the Judicial Manager of BAICO in the Bahamas, and the significant assistance and support of CIMA, we have managed to effect an immediate solution to provide protection to our local policyholders."

Now that BAICO Cayman has transferred its property insurance portfolio, the Controllers of BAICO Cayman are working with potential acquirers of the remainder of the BAICO Cayman business and hope to be able to make further positive announcements in the coming days or weeks.