Concern about recent developments surrounding Ennia (see Tuesday paper) is understandable especially after the related lien on Sun Resorts and 13 other St. Maarten companies that include the much-loved Mullet Bay area. To add some perspective, the latter can hardly be moved elsewhere and at least some of it reportedly regards government land given out in long lease.
The public was aware that Ennia had been placed under “silent curatorship” by the Central Bank of Curaçao and St. Maarten (CBCS) since October 1, 2016, but management and shareholders were apparently not following recommendations. This allegedly endangers the required solvability of the insurance branch, with 82 per cent of its assets or NAf. 1.5 billion consisting of loans to and receivables from affiliated entities.
As the firm is said to account for 50 per cent of the combined insurance market of the two countries in the monetary union, this is obviously a serious matter especially considering all the post-Hurricane Irma damage. However, CBCS is monitoring this situation in general, stating near the end of June that 65 per cent of 8,200 hurricane-related property claims had been settled and 92 per cent of motor vehicle claims, for an average of 70 per cent.
What’s more, the various insurance companies were put on a monthly reporting basis and only eight complaints had been received, indicating no widespread problems. NAGICO last Friday announced having settled 87 per cent of property, 99 per cent of vehicle and 95 per cent of boat claims, for an average 94 per cent. Earlier that week Gulf said it had settled 63 per cent of Irma claims by the end of December 2017 and 98 per cent by the end of June.
These are just examples to illustrate that the overall figures don’t really seem that bad, which obviously does not help individual cases where things go wrong. Nevertheless, with CBCS on top of the issue there is every reason to believe local insurance companies, including Ennia, will continue to honour their commitments in a reasonable manner.
