It is announced for public information by the Ministry of Financial Services & Investment that the principal companies involved in several proposed takeovers within the industry, namely Imperial Life, Canada Life, Life of Barbados, Capital Life and Colina, have been cautioned against premature action pending the lawful consideration of the regulators.

Government continues to review the proposed mergers and or takeovers out of concern for possible risk to the investments of Bahamian policyholders and shareholders as well as concerns about the maintenance of capital adequacy.  This is of special concern when one considers similar mergers in other areas of the world whose projected results fell far short of reality, all to the ongoing detriment of policyholders and shareholders.

The public is reassured that regulators must be satisfied about Colina’s alternative plans in the event of downsizing, especially as relates to Bahamian jobs.

Given wide public concern about anti-trust or anti-competitive issues, the parties have been directly reminded that no approval in these matters has been granted nor implied and that in the circumstances there should be no premature actions, notices, or measures that would pre-empt the lawful determination of the regulators or confuse or adversely impact the affected policyholders or other stakeholders.

The parties have been specifically cautioned to cease and desist forthwith from all actions which would be contrary to these directives.

While Government supports the expansion of business and commercial opportunities, it will do the proper research and consideration of all interests and not simply rubberstamp a deal that is seemingly being presented to the public as a fait accompli or “done deal”.

Any consideration must and will be done in the best interest of the many; the best interests of the Bahamian public at large.

31st December, 2003
Ministry of Financial Services & Investment