- Total Investments increased compared to 2014
- Based on independent revaluation of Mullet Bay and Stewart
- Implementation of new CBCS-regulations, to be completed by 2018
By the end of February 2017 ENNIA will publish its financial statements for 2015. The reason why this is six months later than usual, is that the Central Bank of Curaçao and Sint Maarten (CBCS), responsible for the regulation and supervision of insurance companies in Curacao and Sint Maarten, adopted new guidelines (Valuation guidelines ARAS 2.7) as per September 1st, 2015.
Subsequently, deliberations between ENNIA and both its external auditor KPMG and CBCS to assess the implications required some time. For clients this doesn’t make any difference.
New regulation requires adjustment of ENNIA’s investment policy
The adjustment for ENNIA includes that its two largest investments, comprising the major portion of ENNIA’s total investment portfolio, can no longer be included in the calculation of ENNIA’s solvency ratio. Including these investments ENNIA Caribe Leven NV had a very comfortable solvency ratio of 285% in 2014, covering nearly three times its commitments. After implementation of the new regulations, the same invested capital would lead to a lower solvency ratio. Adaptation of the current investments – for example by sale or re-investment – will lead to an automatic increase of the solvency ratio.
Therefore, a restructuring of ENNIA’s investments, as well as an assessment of the timeframe was needed for ENNIA to implement the new guidelines, which is conditional to approve the 2015 financial statements.
Value of investments increased compared to financial statement of 2014
The value of the two investments in Stewart & Stevenson (an American company) and Mullet Bay (property in St. Maarten) has been reappraised by independent experts in November 2016. The Stewart & Stevenson participation was valued at ANG 505 million and the Mullet Bay property at ANG 781 million. Combined the investments are valued at ANG 1,286 million, which is slightly higher compared to its reported value in 2014 (ANG 1,272 million). Despite a slightly higher underlying value, the solvency ratio has decreased because CBCS only allows a fraction of this amount to be included in the calculations as per the new regulations of September 2015.
Investment portfolio has been adjusted in accordance with new regulations
ENNIA is working to restructure the composition of its investment portfolio so as to meet the new solvency requirements. so far ENNIA has done its utmost, however such actions take time, for selling the assets too quickly will adversely impact the sale price, which is not in the interest of clients. The new regulations furthermore stipulate that ENNIA has to invest a large percentage of its assets on the islands as well. This limits the possibilities even more. CBCS and ENNIA have agreed that it is realistic to set the deadline for full compliance with the new regulations by year-end 2018. For clients this doesn’t make any difference.
Updated investment policy
ENNIA’s investment policy has been updated, based on an analysis and recommendation of actuarial specialist Willes Towers Watson, Netherlands. They supported ENNIA to create a new ‘model’ investment portfolio using a comprehensive Asset Liability Management (ALM) Study, taking into account our commitments and the new CBCS guidelines. ENNIA will use the transition period to 2018 to adapt its current portfolio to one that matches its obligations even better. Based on these actions, the audit of the annual financial statement for 2015 can now be finalized by KPMG by the end of February.
Senior Managing Director ENNIA, Gilbert Martina: “We are pleased that we can thus give clarity on ENNIA’s financial position. It is a fact that ENNIA has solid investments. We need time however, to bring these investments in line with the new guidelines of CBCS. ENNIA is confident that it will succeed in doing so in the next two years. Management, employees and shareholder of ENNIA remain fully committed to the trust and surety of our customers. We are convinced that we have made significant steps to safeguard our clients’ interests as well as solidify ENNIA’s position. We will continue to strengthen our organization, our solvency ratio and our customer values.”
Bron: CuracaoChronicle
Naar verluid heeft Ennia Anthony ‘Centje’ Cijntje al benaderd voor de controle van de jaarrekening over 2016.
Centje geeft bij een hoop stront nog een goedkeurende accountantsverklaring, zoals bij de jaarrekening van Insel Air waarin hij de vordering van 100 miljoen op Venezuela 100% inbaar acht, en zelfs verhoogt met rente.
Slordig, uitermate slordig vooral dat ze hiermee wegkomen.
Mooi verhaal verzonnen door de communicatieafdeling van Ennia. Een pluim verdienen ze. Maar er klopt alleen niets van en dat weten ze zelf maar al te goed. Door vraagtekens die buitenstaanders (w.o. FD ) hadden over het doen en laten van Ennia kwam het balletje aan het rollen. Was dat niet gebeurd dan had m.i. boevenbende KPMG het jaarverslag gewoon goedgekeurd zoals ze al jaren tegen beter weten en tegen alle regels in deden. Niks “new regulations”.
Bij KPMG geldt : wie betaalt, bepaalt ! En dat wereldwijd. Niks onafhankelijk onderzoek. Ze willen na afloop van het contract wel de klant behouden en dat doet de klant alleen als hij tevreden is over de activiteiten van de accountant !
En de klant is alleen tevreden als……..u snapt hem.
( in Nederland dien je na 8 jaar verplicht te wisselen van accountant om ongewenste al te nauwe banden tussen opdrachtgever en -nemer te voorkomen.
Dus maart 2017 staan de accountants van KPMG voor de tuchtrechter.