While the region, perhaps initially, ignored the incidence of financial stress suffered by individual territories and while we faced only limited contagion from the international financial crisis, it is clear that the current regional financial crisis is an important wake-up call; one that we cannot ignore: one that carries powerful lessons that we need to address immediately.
Our system is sound and our major institutions have adequate capital and reserves, but we continue to see the adverse effects of the prolonged recession on credit quality. The process of resolving the Clico insolvency is on-going, managed by the judicial managers, under the supervision of the courts. Other insurance companies are profitable.