Gulf Insurance Limited - Public Statement No. 17 of 2012 (2012-09-17)

Summary

This is a public statement issued by the British Virgin Islands Financial Services Commission (FSC) announcing that it has directed Gulf Insurance Limited to stop writing new or renewal insurance business in the Virgin Islands, and to stop accepting transfers, remittances or payments from its Virgin Islands intermediaries. It is a notice to the market about regulatory action taken against a specific insurer rather than a rule of general application.

• Cease and desist: Gulf Insurance Limited is directed to stop taking on new or renewal insurance business in the Virgin Islands.
• Payment restriction: Gulf is directed not to accept transfers, remittances or payments of any kind from its intermediaries in the Virgin Islands.
• Conditions for lifting the directive: The directive is likely to remain until the FSC is satisfied that Gulf has provided satisfactory evidence of its reinsurance arrangements for Virgin Islands business, and that Gulf is maintaining sufficient admissible assets and financial soundness to meet its liabilities as they fall due.

The statement is informational and specific to Gulf Insurance Limited; it does not impose ongoing obligations on the wider insurance industry, though intermediaries and counterparties of Gulf should be aware they are barred from receiving payments from the company while the directive is in force.

Key obligations

• Gulf Insurance Limited must cease taking on new or renewal insurance business in the Virgin Islands until the FSC is satisfied.
• Gulf Insurance Limited must not accept transfers, remittances or payments of any kind from its Virgin Islands intermediaries.
• Gulf Insurance Limited must submit satisfactory evidence of its reinsurance arrangements for Virgin Islands business to the FSC before the directive can be lifted.
• Gulf Insurance Limited must maintain sufficient admissible assets and provide for its liabilities so as to be able to meet them as they fall due.

Applies to

insurance company (Gulf Insurance Limited), insurance intermediaries in the Virgin Islands