Decision Notice - Alpha Re Limited (2021-10-20)

Summary

This is a Decision Notice issued by the Cayman Islands Monetary Authority (CIMA) formally revoking the Class B(iii) Insurer's Licence of Alpha Re Limited, a company already in official liquidation. It sets out the specific breaches of the Insurance Act, 2010 that led to the revocation and confirms the effective date of the action.

• Unpaid fees: Failure to pay annual fees and accruing surcharges for 2018 to 2019 (section 7(1) and (2)).
• Solvency: Failure to maintain the prescribed margin of solvency (section 8(2)(a)).
• Risk management: Failure to maintain adequate arrangements for managing risks (section 8(2)(b)).
• Governance: Failure to maintain an effective system of governance approved by the Authority (section 8(2)(g)).
• Annual returns: Failure to file 2016 and 2017 annual returns, including audited financial statements for those years (section 9(1)).
• Ownership changes: Failure to obtain the Authority's prior written approval for multiple changes to the ultimate shareholder or ownership structure (section 12(1)).

CIMA concluded, among other things, that the company was or appeared likely to become unable to meet its obligations, that its business had not been conducted in a fit and proper manner, and that certain named individuals were not fit and proper to act as directors or to hold control or ownership of a licensee. On this basis the Authority revoked the licence under section 24(2)(c) of the Act, with the decision effective 15 October 2021.

Applies to

insurers, Class B(iii) insurance licensees, official liquidators of insurance companies

Deadlines

• 15 October 2021: Effective date of the Authority's decision to revoke Alpha Re Limited's Class B(iii) Insurer's Licence.