WILLEMSTAD – Ennia, the largest insurance company in the Dutch Caribbean, has been financially weakened by its owner, the Iranian-American businessman Hushang Ansary.
This emerges from a secret De Nederlandsche Bank (DNB) report, which has been seen by the Financieele Dagblad (FD) (Dutch Financial Newspaper). The document is dated June 2015.
Ennia spent the last few years certainly three quarters of its reserves in two controversial agreements with owner Ansary, the newspaper reported.
Some 570 million were taken by the wealthy businessman from Ennia’s resources to invest in other companies within the group owned by Ansary. It is a so-called pocket-pocket transaction in which the profit actually stays within the company.
The DNB now shows that tens of thousands of policyholders of the insurance company are now without sufficient provision of insurance and they are not even aware of this.
The ‘draining’ of the insurance company happened under the watchful eye of De Nederlandsche Bank (DNB) and the Central Bank of Curaçao and Sint Maarten (CBCS).
Sources report to the FD that the DNB management was already warned in 2011 about the practices. The regulator called for an investigation four years later.
DNB has doubts about the integrity of fellow supervisor CBCS in Curaçao. It’s such a mess in the CBCS, DNB requested additional powers, and got it, to act on CBCS territory.
That emerges from the FD investigation in response to lingering problems in the insurance company.
Source: Curacao Chronicle http://curacaochronicle.com/local/insurance-company-ennia-emptied-under-the-eyes-of-the-central-bank/
This sounds a lot like Baico and Clico (google it) collapse in Trinidad also under the noses of the regulators there.
It shows again why large institutionalused entities like Central Banks should be downsized to essential tasks only and double checked by annual audits.
Same happened in the US with the financial collapse. Major negligence of the regulators. Same in Europe with the financial crisis.
Let’s learn a valuable lesson from this: check the checker!
He screwed sxm With Mullet Bay in 95 now is Curacao’s turn
Not only Curacao is getting screwed but ALL policy holders on ALL islands where ENNIA operates, which includes thousands in St. Maarten as well!!
Startling and very frightening conclusions. Please remind me again WHY we have a Central Bank?! Aren’t they there to protects US (local bank account holders, local policy holders) from financial mismanagement by local banks/insurance companies?! They are the regulator of the local financial sector and yet can’t protect us as they are aware of this situation 4 years back already!!!!!
Parliament needs to call in the responsible Central Bank reps and start demanding answers and demand for dismissals for gross negligence of their core task!!!
That is why it is better to avoid banking and insurance companies and lots of other financial services all together. They have proven to be highly unreliable, dishknest and without integrity. Nothing to be afraid of, this is the way we learn these days, by heeding the signs and by using our awareness in all matters. Time to simply follow lime sheep is over
@ Myriam – So how would you prepare for old age?