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TUESDAY, SEPTEMBER 10, 2019

$4.74 GB Power: 80% of Freeport grid survives Dorian By YOURI KEMP GRAND Bahama Power Company’s (GBPC) chief executive said the restoration of customer supply would begin yesterday evening after 80 percent of its Freeport grid infrastructure survived Hurricane Dorian. Dave McGregor, the utility’s chief executive, confirmed to Tribune Business that much of its transmission and distribution network within the city - including wires, poles and substations - had withstood the monster storm. He revealed that one of GB Power’s two generation plants, the West Sunrise facility, had been tested by its damage assessment team over the weekend and was now ready to supply electricity despite being completely flooded during Dorian. “Nobody’s electricity has been restored, but by later this evening some would be restored,” Mr McGregor added. “Today our teams are focusing on energising areas that have not been affected by the flooding.” GB Power’s Facebook page yesterday afternoon said power had been restored to the areas of the Pelican Bay Hotel; the Grand Lucayan Hotel; Seahorse Plaza; portions of Kings Road; Coral Beach; the Harbour House Towers; portions of Seahorse Village; and portions of Windsor Park. GB Power has yet to determine the cost of the damages inflicted by Hurricane Dorian, which devastated the northern Bahamas - especially east Grand Bahama and Abaco - less than three years after Hurricane Matthew forced it into a $28m network rebuild. The resiliency of Freeport’s transmission and distribution system during Dorian indicates that lessons were learned from Matthew, and that GB Power’s network was better prepared to face catastrophic damage this time around. GB Power’s distribution grid fared better than the utility’s 50-strong vehicle fleet, with Mr McGregor revealing most will have to be written off after being immersed in Dorian’s flooding and storm surge. He added that the effects of salt water on GB Power’s system, especially the insulators and wires, will create challenges in restoring power

SEE PAGE 5

$4.74

$500m Dorian payout ‘biggest I have seen’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

NSURERS yesterday estimated that Hurricane Dorian claims payouts could “easily exceed” $500m, with one top executive revealing: “It’s definitely the biggest event I’ve ever seen.” Tim Ingraham, Summit Insurance Company’s president, told Tribune Business that the industry wanted the damage assessment and claims process “to be moving a lot quicker” but had been frustrated by the difficulties associated with accessing the parts of Abaco hardest hit by the category five storm. His counterpart at RoyalStar Assurance, Anton Saunders, added that the entire Bahamian property and casualty industry was “trying every possible solution” to get loss adjusters into Marsh Harbour and the surrounding Abaco cays so that the process of damages and claims assessment could begin in earnest more than a week after the battering from Dorian. Pledging that claims will be “fairly paid” based

• Insurers want claims to move ‘lot quicker’ • But difficulties accessing Marsh Harbour • ‘No alarm’ needed on AM Best review • Process could take ‘one year’ for Abaco

A TOILET stands amid the rubble of what was once a home after it was destroyed by Hurricane Dorian one week ago in Pelican Point, Grand Bahama. Photo: Ramon Espinosa/AP on each individual insurance contract, Mr Saunders reassured Bahamian homeowners and businesses that RoyalStar and the other local underwriters would “stand by them through thick and thin”. He also urged clients “not to be alarmed” by the release from AM Best, the international insurance

credit rating agency, that placed four property and casualty insurers - Bahamas First, RoyalStar, Security and General Insurance and Summit - “under review” as a result of the likely ninefigure claims payouts that will result from the devastation inflicted by Dorian. Describing the move as standard operating

ANSBACHER (Bahamas) is accusing a Puerto Rican bank of “wrongfully retaining” $10.087m of its funds that are “urgently needed to honour customers’ transactions”. The Bahamian institution, part of AF Holdings (the former Colina Financial Group), is demanding that the US federal courts order Bancredito International Bank to return the money to it and pay damages equivalent to the sum being “illegally withheld”. It is alleging that the Puerto Rican bank repeatedly stalled on its requests for the funds to be returned by wire transfer, even suggesting that it needed to conduct 180 days’ due diligence on Ansbacher (Bahamas) request.

procedure for AM Best following any weather-related disaster, Mr Saunders said RoyalStar, its Bahamian counterparts and their reinsurers have “all the resources necessary” to meet their financial obligations to clients. While Hurricane Matthew, which struck New Providence, Grand Bahama and Andros in October 2016, generated around $400m in insurance claims payouts, the industry yesterday affirmed that Dorian’s greater wind speeds, storm surge and flooding would likely result in an even greater total settlement. “I would think this will easily exceed $500m at the end of the day,” Mr Ingraham told Tribune Business. “It’s definitely, in my history of being in the insurance industry, the biggest one we’ve seen.

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Dorian ‘demands altered approach’ from insurers By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net HURRICANE Dorian’s catastrophic impact “demands that insurers take” a more conciliatory approach to how claims are handled, an outspoken QC urged yesterday. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that Bahamian property and casualty insurers - and their international counterparts - needed to take “a more generous perspective” by providing clients with “interim payments” so they can rebuild their lives following arguably the most destructive storm in Bahamian history. Arguing that loss adjusters had too often sought to “beat down” the value of claims payouts stemming from recent hurricanes that hit Grand Bahama, Mr Smith said a swift insurance response that went beyond “pennies on the dollar” was

• QC: Go beyond ‘pennies on the dollar’ • Calls for interim payments to aid ‘survival’ • Regulator not ‘effective consumer watchdog’

FRED SMITH QC essential for the “survival” of some businesses and homeowners. Lamenting the lack of consumer protection for insurance clients in The Bahamas compared to other nations, he argued that the government should consider “stepping in” by enacting “emergency legislation to ensure insurance claims are managed on

an equitable basis”. “One of the big issues we have in the wake of Dorian is people need interim payments or payments on account so they can survive,” Mr Smith told Tribune Business. “Unfortunately, in the wake of previous disasters, adjusters are often motivated to show how efficiently they have acted on behalf of the underwriters. “They refuse to make interim payments, and insist on questionable settlements, often for pennies on the dollar, by the victim. Many unsuspecting consumers, in many instances, don’t know it’s a final settlement or, if they do, have no choice but to accept to close a hole on their roof with a bit of plywood.

Ansbacher: Our $10m is ‘wrongfully withheld’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.54

• Bahamian bank sues Puerto Rico correspondent • Funds ‘urgently needed for customer transactions’ • Requests for monies return repeatedly stonewalled Bancredito ultimately informed Ansbacher (Bahamas) it had issued a cheque for the $10.087m - a move the latter argued would cause problems with regulators since it would be viewed as a “suspect banking transaction” that none of its other correspondent banks are prepared to handle. Legal documents obtained by Tribune Business reveal that the lawsuit, filed on August 27, stems from a correspondent banking relationship Ansbacher (Bahamas) inherited through its acquisition earlier this year of Lyford International Bank. That deal, which was delayed by a dispute

involving Lyford International Bank’s two shareholding families, saw Ansbacher (Bahamas) take over the correspondent banking relationship the former had established with Bancredito on July 31, 2017. This resulted in Lyford International Bank opening an account with the Puerto Rican institution, with the latter assuming responsibility for guarding and investing any deposited funds. Ansbacher (Bahamas), which is alleging that it has been unable to locate a copy of the correspondent agreement, completed its 100 percent acquisition of Lyford International on February 1, 2019.

Bancredito executives met with Ansbacher and Lyford International’s principals in Nassau almost three weeks after the deal closed, the lawsuit alleged, with the merger of the latter’s assets into its fellow Bahamian bank due to be completed by July 31, 2019. With Ansbacher (Bahamas) now possessing “the right to obtain possession of all funds within the account in the name of Lyford maintained at Bancredito” through the acquisition, the Puerto Rican bank was instructed on June 4, 2019, to return $5m to the former. Despite “an explanation that these funds were

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“The catastrophic nature of Dorian demands that the insurers take a different approach to The Bahamas on this occasion. We need to rebuild... I urge the insurers and their adjusters to approach this catastrophe from a generous perspective, and to help by providing interim payments until people can properly address the full extent of their losses with professional help so they can make comprehensive and appropriate claims,” he continued. “Please do not take advantage of the claimants and beat them down. It’s important for the insurers to act swiftly so people can engage in an emergency rebuild and recovery mode.”

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$4.59 Moody’s: Dorian rebuild hit from insurance woes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE economic boost from Hurricane Dorian recovery “could be limited” by the 60 percent of Bahamian households who failed to fully insure, a global credit rating agency has warned. Moody’s, in an assessment that underlined how the category five storm has fully exposed this nation’s vulnerability to climate change, said “the vast majority of low income households” impacted will struggle to rebuild their lives due to the absence of insurance coverage and limited to non-existent savings. Warning that this could put further pressure on the government’s alreadystrained finances, Moody’s nevertheless suggested that the Minnis administration was in “a better position” to deal with the fall-out from Dorian. Besides the $100m emergency credit facility put in place with the Inter-American Development Bank (IDB), The Bahamas will also receive almost $11m from the Caribbean Catastrophe Risk Insurance Facility (CCRIF). That payment, which some are likely to dismiss as insignificant, was confirmed last week. Acknowledging that The Bahamas’ economic growth will “take a hit” from Dorian, Moody’s added that 76 percent of tourism arrivals to this nation will be unaffected because New Providence where the majority of the country’s assets are located was spared the storm’s direct impact. But, while predicting that Dorian will have little impact on The Bahamas’ debt-toGDP ratio, the rating agency estimated that the storm’s impact will be greater than the $588m worth of loss and damages - a sum equal to 4.9 percent of GDP - inflicted by Hurricane Matthew in October 2016. “While reconstruction could provide a small boost to growth next year, the recovery could be limited by relatively low insurance penetration in the country,” Moody’s warned. “According to the IMF, approximately 60 percent of households are without insurance or are underinsured. “While tourism-related infrastructure is likely covered by insurance, the vast majority of low income households affected by Dorian will likely struggle to rebuild. This, in turn, could

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PAGE 2, Tuesday, September 10, 2019 CARNIVAL Cruise Line has reaffirmed its commitment to its $100m Grand Bahama cruise port project despite the devastation inflicted upon the northern Bahamas by Hurricane Dorian. Giora Israel, the cruise line’s senior vice-president of global port and destination development, said on a Friday visit to Freeport: “I’m here to advise that Carnival was committed, is committed and re-committed to the port project. “As soon as is practically possible, we will finalise the paper work with the government and we want to do it here in Grand Bahama, with the Prime Minister, so that we can go to work. We remain committed to this project. Speaking at the Emergency Operation Centre at the CA Smith Building, Mr Israel added: “Just ten days ago, or more, the Prime Minister and minister Thompson, in Nassau, announced that an agreement has been reached and finalised for the construction of a major cruise port in Grand Bahama, which we had announced in February of this year. I just want to reaffirm that we are still committed to that project.” Mr. Israel, together with Marie McKenzie, vicepresident of global ports and Caribbean government relations; David Candib, vice-president of development and operations, global

CARNIVAL AFFIRMS $100M CRUISE PORT COMMITMENT

STRONG PARTNERSHIP – Senator Kwasi Thompson, third from left, minister of state for Grand Bahama, thanks Giora Israel, Carnival’s senior vice-president of global port and destination development, for the cruise line’s commitment to the long-standing relationship with Grand Bahama. Joining Mr Israel were, from left, David Candib, Marie McKenzie and Carlos Estrada, right. Photo: Lisa Davis/BIS port and destination development group; and Carlos Estrada, director of commercial home port operations, travelled to Grand Bahama to assess Hurricane Dorian’s impact and deliver relief supplies. The Carnival executives also held a private meeting with K Peter Turnquest, deputy prime minister, and Kwasi Thompson, minister of state for Grand Bahama. “A part of our goal in providing

help to Grand Bahama is to do our part to help bring the economy back on its feet, and quickly, and to bring hope back to the people of Grand Bahama,” said Mr Israel. “Carnival has a long, great relationship with The Bahamas that spans many decades, and so in line with that relationship we feel that it was not even a question of whether or not we would step in and do our part to help Grand Bahama.”

Senator Thompson added: “We are very pleased that Carnival has confirmed their commitment to the cruise port. That message is essential for the relief, the recovery and the comeback. I think that message is one which all Grand Bahamians will take note of and would be pleased about. “I want to thank Carnival Corporation and the entire team for their decision to come to Grand Bahama at

this time, which confirms their partnership and commitment to Grand Bahama. They didn’t come emptyhanded, but they brought with them loads of relief items, essential medical supplies and personnel. So to them we say: ‘thank you’. “In fact, we want to say how much we appreciate the entire cruise industry. They have really come together, have been committed, and they were some of the first groups of people to come in and bring relief for the whole island of Grand Bahama.” Mr Israel said Carnival is also looking to the medium and long-term revival of Grand Bahama’s economy, including the re-opening of the Grand Bahama Shipyard as soon as possible. As one of the original founders of the Shipyard more than 20

THE TRIBUNE years ago, Mr Israel says he understands the project’s importance. “It would be good if the Shipyard could be opened quickly,” said Mr Israel. “We (Carnival, the government and executives of the Shipyard) are in discussions about what it would take to make that possible in a matter of days. “Not only does the Shipyard create jobs for those who work there, but it creates a lot of auxiliary contributions to the economy - from airlines, port agents, hotels and restaurants. We want to make sure that businesses are coming back, that the economy rebounds; that beyond the most urgent and immediate help, we are looking to the future.” Mr Thompson said the Shipyard was critical to restarting the economy of Grand Bahama, together with the cruise industry. He added that Carnival officials were already making connections with port agents to assess whether they can bring in passengers, and will have further talks with the taxi association and tour operators to determine the right day to bring in cruise visitors. “The prime minister himself noted that one of the best ways a person can show his/her way of bringing relief is to continue to do business with The Bahamas,” said Mr Thompson. “So, Carnival’s commitment to continue to bring cruise ships to Grand Bahama is what will help us a lot. “One of the things that we have to rebuild quickly is the business sector of Grand Bahama, which was hugely affected by severe flooding. So to have partners that come and say that they are fully committed and on the ground early, is very important.”

NOTICE

NOTICE is hereby given that MARKINDIY PAME of North Eleuthera, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rd day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas. LEGAL NOTICE

NOTICE CHELSEA SQUARE MANAGEMENT CO. LTD. N O T I C E IS HEREBY GIVEN as follows:(a)

CHELSEA SQUARE MANAGEMENT CO. LTD is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 06 September, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is OCTAGON MANAGEMENT LIMITED, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 10 day of September, A. D. 2019. ___________________________________ OCTAGON MANAGEMENT LIMITED Liquidator

THE TRIBUNE

Tuesday, September 10, 2019, PAGE 3

REGULATOR ‘VIGILANT’ ON HOARDING AND GOUGING

By YOURI KEMP

REGULATORS are continuing to probe allegations of price gouging involving food items and batteries in the wake of Hurricane Dorian, the Prices Commission’s chairman warned yesterday. Danny Sumner, urging companies to desist from such practices, said that while building supplies and hardware stores had remained compliant with the law to-date “we have to be as vigilant [with] them as much we are with food and convenience stores”.

Moody’s: Dorian rebuild hit from insurance woes FROM PAGE ONE

affect the sovereign’s finances should the government provide tax exemptions on reconstruction materials or other types of financial support.” Despite the widened deficit for 2019-2020, which will likely result from the Dorian-related reduction in revenues and rise in disaster relief spending, Moody’s is forecasting little change in The Bahamas’ debt-to-GDP ratio. “Historically, the Government has responded ex-post to natural disasters by reprioritising spending and/or widening the fiscal deficit, which resulted in an increase in the debt burden,” it added. “More recently, however, the government has taken steps to create buffers (comprised of a natural disaster fund, a contingent credit line, and disaster insurance) to mitigate the fiscal cost of future hurricanes as well as increase its physical resilience. “Moreover, recent improvements in government finances also better position the sovereign to deal with the aftermath of this latest hurricane,”

He added that price inspectors are investigating consumer complaints daily once they are brought to the commission’s attention. It then dispatches a team to the businesses involved in the allegations.

Mr Sumner said: “If found that business owners have violated Chapter 339, Article 4, of the statute law of The Bahamas regarding price gouging, then the perpetrators can be first brought to the Consumer Protection Board for further investigation and hearing with the minister responsible, which is the minister of labour, Dion Foulkes. “Then, if the board, after all of the evidence has been determined, wishes to prosecute, it is within the minister’s discretion to take the matter further with

regard to prosecution or to dismiss.” When asked how the Prices Commission determines if a business is in violation of the price gouging laws, Mr Sumner said: “Every store has an index price list for items provided to them, and a certain formula would be applied by the inspectors on whether a price is too high. “It is a formula that is based on the amount of custom duties on the goods imported and/or VAT calculated on the purchase of the item, in addition to where the goods were

purchased and price they paid prior to Bahamian taxes being levied.” The punishment for price gouging laid out in Article 4 is a maximum $5,000 fine per item found in violation, or a prison sentence not exceeding 12 months in prison. Mr Sumner, meanwhile, also warned building supply and hardware stores against hoarding supplies. He suggested this could be a problem when the post-Hurricane Dorian rebuilding efforts start in earnest, as the Prices Commission wants to ensure

reconstruction supplies are made available to all. The commission chairman reiterated that Bahamian law prohibits the hoarding of supplies for speculation or profiteering. He said from his personal experience that businesses selling lumber, hardware and building supplies are more prone to violate this statute. Mr Sumner added that inspectors are currently doing “spot-checks” on various hardware and building supply stores to ensure there is no hoarding of building supplies.

Moody’s continued. “Preliminary figures showed that the deficit in fiscal 2018-2019 had decreased to 1.7 percent of GDP from 3.4 percent the previous year, meeting the target set by the country’s new fiscal rule (1.8 percent of GDP) and bringing the debt burden to 58.8 percent of GDP. “Although we expect this event to likely contribute to an increase in government debt, The Bahamas’ debtto-GDP is likely to remain broadly in line with the 59.6 percent median for its ‘Baa3’ rated peers.” Moody’s said the $100m IDB credit line and CCRIF payout would help cover the government’s near-term Dorian response, estimating that the total funding available will be equivalent to between 0.8 percent to 1.2 percent of Bahamian gross domestic product (GDP). “Economic growth will likely be lower than our previous forecast of 1.8 percent for 2019, although reconstruction efforts could provide a small boost in 2020,” Moody’s said. “We expect the effect to be relatively contained compared to other Caribbean islands’ experiences with other hurricanes. “Dorian hit the islands of Abaco and Grand Bahama in the north, which together is home to 20 percent of the population and accounted

for 12.4 percent of total tourist air arrivals in 2018. However, New Providence, which is more central and is home to the capital, Nassau, suffered significantly less damage – there were some floods due to the heavy rainfall but the international airport remained open,” the rating agency added. “New Providence receives the bulk of tourist air arrivals – 76 percent of the total in 2018 - and they stay mainly at the largest resorts on the island, Atlantis and Baha Mar.” Analysing Dorian’s broader implications, Moody’s said: “This latest hurricane underscores The Bahamas’ exposure to climate change risk, which is driven by the country’s small economic size and the frequency and magnitude of natural disasters. “Similar to most Caribbean countries, The Bahamas is vulnerable to hurricanes, which is exacerbated by the fact that 72 percent of its land is low-lying or within five metres above sea level. At the same time, the country’s small economic size (with a nominal GDP of $12.4bn in 2018) and concentration of economic activity in the tourism sector limit shock absorption capacity. “That said, the impact of hurricanes varies greatly because The Bahamas

comprises over 700 islands that are spread over more than 13,000 square kilometers, with most economic activity – and more developed infrastructure – concentrated in a few islands.” Moody’s continued: “According to the

International Monetary Fund (IMF), over the past 30 years the average annual damage of natural disasters in The Bahamas has amounted to approximately 1.5 percent of GDP (encompassing both the private and public sector). “This is slightly higher than the 1.2 percent average

for the Caribbean region. In 2016, Hurricane Matthew – the most recent, preceding example of a hurricane that caused large losses – cost The Bahamas around 4.9 percent of GDP ($588m). Given Dorian’s magnitude, we expect the costs of this hurricane to be higher.”

DANNY SUMNER

PAGE 4, Tuesday, September 10, 2019

THE TRIBUNE

$500m Dorian payout ‘biggest I have seen’ FROM PAGE ONE “There’s going to be a significant number of people uninsured or underinsured. In the past a large number of persons have been underinsured, but we can’t speak to this loss precisely because it’s very difficult to get into Abaco. “Just to get in there to

do a proper assessment has been difficult to this point. It’s been easier for them [loss adjusters] to get into Grand Bahama; they’re on the ground there. They’re just now getting into Abaco. It’s been a challenge. NEMA is not keen on having too many people roaming around Marsh Harbour.” Such challenges were

echoed by Mr Saunders, who confirmed that insurance industry adjusters had been working in east Grand Bahama despite the absence of running water and electrical lighting to assist their claims assessments. But, when it came to Abaco, which took the full brunt of Dorian’s 185 mile per hour wind and storm

surge fury, he added that Bahamian property and casualty insurers were currently debating whether to hire a boat and moor it in Marsh Harbour to house their loss adjusters and claims personnel. Going into Treasure Cay and fanning out from there was another option. “The industry is trying to formulate plans for how to get on the ground in Abaco,” the RoyalStar chief told Tribune Business, “whether they live on a boat and go back and forth, or we get some clearance from NEMA. “We want to be part of the solution, not part of the problem. We are trying every possible solution to get boots on the ground in Abaco. We are here to respond to our policyholders and, at the end of the day, hopefully the Bahamian people, the government, everyone sees the importance of the insurance industry in The Bahamas.” A swift start to the damage/claims assessment process is vital to kickstarting the rebuilding of communities and homes, not to mention businesses and economies, that have been left shattered in Dorian’s wake. Any delays in entering the worst-hit areas threaten to further set back the reconstruction process, and the ability of storm-ravaged Bahamians to rebuild and move on with their lives. It also puts back the multimillion dollar reinsurance inflows that are critical to boosting The Bahamas’ foreign currency reserves at a time of depressed economic activity. “The issue right now is no one is able to get into Marsh Harbour, and Marsh

Harbour is kind of ground central,” Mr Ingraham told Tribune Business. “We hear stories that people have been wiped out, but also see pictures of buildings still standing and talk to people who say their home is still standing and it was not a wipe out. “It’s difficult to get a handle on Marsh Harbour and come up with any kind of numbers... We’d like it to be moving a lot quicker, but unfortunately a lot of things are outside our control right now and we have to exercise some patience until we get into the hardest hit areas. “It will be a long haul, but not as far as getting claims paid. Hopefully we can get claims paid fairly quickly, and it’s certainly every insurer’s intention to get claims moving and put people in a position to rebuild their homes and lives.” In contrast, Mr Ingraham said Summit, which is the carrier through which Insurance Management places much of its property and casualty business, is expecting to get “a more substantial report” on damage in Grand Bahama within “the next day or two”. He added that homeowners had already begun sending in information to support their claims, although reconstruction in central and north Abaco - as well as Grand Bahama - will also depend on the provision of adequate security together with rebuilt road, dock, airport, communications, electricity and other types of infrastructure. That rebuild, together with non-insurance and underinsurance, and the loss of economic activity, could well drive Dorian’s damage from the hundreds of millions into the lower billions. Grand Bahama and Abaco are, respectively, the second and third largest population and economic centres in The Bahamas, meaning the storm has affected a significant proportion of the country. Mr Ingraham revealed that, combined, Grand Bahama and Abaco accounted for around onethird of Summit’s insured risks. Mr Saunders added that RoyalStar has 18-20 percent market share across the two islands, but indicated that Freeport - where the majority of insured risks are located - had not fared as badly as east Grand Bahama where coverage penetration was less. “From a claims standpoint that is probably going to be managed very quickly, and got out the way as quickly as possible,” he said. “All efforts will probably have to be concentrated on Abaco for probably up to a year. You will have lingering claims, some people you cannot find and some people who say they don’t want to come back because they are traumatised.” Mr Saunders also reassured Bahamian insurance clients over the AM Best review, which in an

unprecedented move has also placed life and health insurers Colina Holdings (Bahamas), Family Guardian, and Colonial Group International (Atlantic Medical) under assessment. It is unclear why AM Best has taken this action, since none of these entities have any involvement in Dorian claims payouts. The rating agency, though, could be concerned about the impact the storm’s overall economic fallout will have on them. “AM Best has placed the credit ratings under review with developing implications for the major property/casualty and life/health insurance companies operating in The Bahamas,” it said. “These rating actions are a result of the devastation caused by Hurricane Dorian and the limited information that is currently available with regard to loss of life and property, the status of the medical delivery system and the overall economic impact to the region. “While AM Best recognises that rated property/ casualty insurers in The Bahamas purchase significant catastrophe reinsurance protection for the benefit of their policyholders, AM Best remains concerned regarding the scale of potential insured losses given the magnitude of the storm and the absence of timely information. “AM Best believes these companies will make every effort to meet their obligations to their policyholders and restore stability in the region. The ratings will be removed from under review with developing implications following a complete analysis of each company’s financial strength in the aftermath of Hurricane Dorian.” Describing the review’s announcement by AM Best as “standard practice”, Mr Saunders told Bahamian policyholders in the stormaffected areas: “Every claim will be fairly paid based on the contract you have. We will stand by our clients through thick and thin. “We don’t want the public to be alarmed that we are under pressure or have no resources. We have all the resources necessary. We have a reinsurance table which is one of the best in the world; all rated ‘a-’ and above. “The message we’re sending to clients is this is a difficult process, especially in Abaco, but we’re getting to you. As soon as possible we will put adjusters on the ground, get there and start assessing, finalising and paying the claims.” Mr Ingraham and Mr Saunders differed on whether Dorian’s payout will impact Bahamian property and casualty premium rates moving forward, with the former arguing it was likely to contribute to an increase and the latter deferring an answer until RoyalStar spoke to its reinsurers.

NOTICE NOTICE is hereby given that SHERENE DANIEL of 3rd Street, Coconut Grove, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 10th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that KENOL AGUET of Wulff Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 10th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Tuesday, September 10, 2019, PAGE 5

Ansbacher: Our $10m is ‘wrongfully withheld’ FROM PAGE ONE urgently needed for continued operations and to be able to timely honour customer transactions”, Ansbacher (Bahamas) alleged: “Despite sufficient good funds on deposit in the account, and despite Lyford and Ansbacher making repeated demands upon Bancredito on and after June 4, 2019, to perform the US $5m wire transfer, Bancrédito acknowledged receipt of the June 4, 2019, wire transfer request but failed to respond at all until June 17, 2019.” The Puerto Rican bank blamed the hold-up on a “compliance” review of the wire transfer request. The two Bahamian institutions continued to make repeated “demands” for the $5m’s return, “expressing an urgent need for funds in the account”, to which Bancredito responded at end-June by requesting more due diligence information. Alleging that they fully complied with the request, Ansbacher and Lyford claimed that Bancredito’s continued stonewalling prompted a July 3, 2019, demand that the account and correspondent banking relationship be terminated and the $10.087m returned. They alleged that no response was received until three weeks’ later, when

the Puerto Rican institution said it “intended to conduct 180 days of additional unspecified due diligence, to be completed by December 30, 2019 or thereafter, before any release of funds from the account”. This prompted the two Bahamian institutions to threaten legal action, to which Bancredito responded on August 12, 2019, by informing them it had closed the account and “inexplicably issued a cheque to Lyford” for the $10.087m. Ansbacher and Lyford objected to both the payment method and its dispatch to an address that was no longer valid, while arguing that a “cheque for such a large amount would likely be considered a suspect banking transaction, which would certainly cause deposit and collection problems”. “As of this date, plaintiffs are unaware whether the $10.087m cheque to Lyford was actually sent, or delivered, but it is not in the possession of the plaintiffs,” the two Bahamian institutions alleged. “Due to, among other things, existing [US] and other related regulatory and security rules, restrictions and constraints upon financial institutions, neither Ansbacher or Lyford are able to deposit or negotiate a $10.087m cheque payable to Lyford even if such a cheque was payable to Ansbacher. “Plaintiffs have exhaustively inquired with all their corresponding banks, and none are able or willing to accept deposit of such a cheque, and any remittance of the account balance must be made to Ansbacher by SWIFT wire transfer.”

LEGAL NOTICE OF DISSOLUTION

INVESTMENT CONDOMINIUM ACT, 2014 In Voluntary Liquidation

Notice is hereby given in accordance with s.14 of the INVESTMENT CONDOMINIUM ACT, 2014 that the Dissolution of MFINANCE INVESTMENT CONDOMINIUM is completed, a Certificate of Dissolution has been issued and the ICON has therefore been struck off the Register. The date of completion of the dissolution was 8th April, 2019. ________________________________________

MMG FUND SERVICES (BAHAMAS) LTD. Liquidator

LEGAL NOTICE

NOTICE

Sage Advisory Ltd. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Sage Advisory Ltd. is in dissolution as of August 30th, 2019. Lighthouse Corporate Services Ltd., situated at Old Fort Building 4, Suite 303, Lyford Cay, Nassau, Bahamas is the Liquidator. LIQUIDATOR ______________________

LEGAL NOTICE

NOTICE

Coco Plum Advisory Ltd. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Coco Plum Advisory Ltd. is in dissolution as of August 30th, 2019. Lighthouse Corporate Services Ltd., situated at Old Fort Building 4, Suite 303, Lyford Cay, Nassau, Bahamas is the Liquidator. LIQUIDATOR ______________________

Accusing Bancredito of acting “recklessly and not in a commercially reasonable manner”, the Bahamian institutions alleged: “Bancrédito has wrongfully retained over $10m of Lyford’s and Ansbacher’s money in the account, using it for its own pecuniary gain, to the detriment and damage of both Lyford and Ansbacher. “Bancredito’s delays, inaction, actions and conduct described above are wholly abnormal and commercially unreasonable, and entirely unacceptable, within the applicable standards in the banking industry. “It typically takes only hours, or perhaps a business day or two, to conduct due diligence, and honour the valid written wire instructions of an account customer and/or to close an account and transfer account funds upon the written instructions of a customer.”

Ansbacher and Lyford are not the first Bahamian financial institutions to experience such alleged difficulties with Bancredito. Tribune Business reported in November 2017 how Capital Union Bank, which is based at the Lyford Financial Centre, was forced to initiate legal action to recover $2.343m deposited in Puerto Rico via a similar correspondent relationship. Capital Union had alleged that the Puerto Rican institution failed to return the funds despite ten written requests made over six weeks, with the monies urgently required for its “operations with other counterparties” and their absence threatening to trigger a $2.4m hit to its capital base and extra scrutiny from Bahamian regulators. That legal battle was settled soon after it attracted media scrutiny.

GB Power: 80% of Freeport grid survives Dorian FROM PAGE ONE to 100 percent of Grand Bahama because salt conducts electricity. As a result, the safety of technical team members and linemen will be a primary concern. Mr McGregor said virtually all GB Power’s 200-plus employees are back working to restore energy supplies despite some losing their homes and all possessions to Dorian. The utility’s efforts are being supported by their 100 percent Canadian owner, Emera, and Emera’s Florida subsidiary, Tampa Electric (TECO). Some 20 technicians arrived in Freeport on Sunday night, inclusive of linemen, mechanics and security personnel, together with 20 vehicles. A further 60 sup-

port and recovery staff are due to arrive tomorrow. Mr McGregor added that GB Power was working with the Grand Bahama Port Authority (GBPA) to deal with electrical inspections of buildings to ensure power can be restored. “The building services department have been meeting two to three times a day with GB Power,” he said, adding that the primary criteria for power restoration is that homes must have “no present flooding concerns and no roof damage”. The GB Power chief also warned consumers against having diesel generators attached to the home metering system that ties directly into GB Power’s distribution grid. This would result in consumers sending electricity back into the GB Power system and creating electrified “live wires”, which would then pose an electrocution risk to linemen working on power distribution and transmission equipment.

LEGAL NOTICE

NOTICE

Avent Wealth Management Ltd.

Weizen Investments Ltd.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Avent Wealth Management Ltd. is in dissolution as of September 4th, 2019.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Weizen Investments Ltd. is in dissolution as of September 4th, 2019.

That International Liquidator Services Inc., situated at 3rd Floor Withfield Tower, 4792 Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

In Voluntary Liquidation

PAGE 6, Tuesday, September 10, 2019

THE TRIBUNE

Dorian ‘demands altered approach’ from insurers

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 9 SEPTEMBER 2019

(242) 323-2320

FROM PAGE ONE

ALL SHARE INDEX: CLOSE: 2,172.96 | CHG: 5.59 | %CHG: 0.26 | YTD: 63.51 | YTD%: 3.01 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.50 2.81 2.64 10.00 7.35 15.60 9.30 3.75 14.20

52WK LOW 3.50 19.17 4.90 4.46 1.00 0.19 2.00 9.17 6.15 3.60 7.00 2.35 1.75 7.51 6.10 12.10 6.20 3.01 13.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

52WK HI 2.25 4.31 2.06 191.61 158.55 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.98 11.06 6.16 4.07 7.50 2.92 2.64 10.57 7.00 15.45 9.20 3.40 14.20

CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 5.22 11.06 6.16 4.07 7.50 2.93 2.64 10.43 7.00 15.55 9.20 3.40 14.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.24 0.00 0.00 0.00 0.00 0.01 0.00 -0.14 0.00 0.10 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

VOLUME

1,000 16,476 403

5,000

VOLUME

NAV 2.25 4.31 2.06 191.61 158.33 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 9.92 8.68 11.38

EPS$ 0.239 0.932 1.760 0.323 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.000 0.728 0.816 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.610

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 17.2 18.7 N/M 18.3 N/M N/M -11.9 15.3 13.7 22.1 53.6 28.7 5.7 N/M 9.6 19.1 9.8 16.7 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.95% 0.00% 2.32% 2.27% 3.14% 3.43% 3.47% 2.17% 3.53% 4.30% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD%12 MTH% 2.15% 3.88% 1.61% 4.11% 1.53% 2.74% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 5.53% 8.48% 8.12% 12.28% 3.03% 4.85% 9.83% 0.60% 3.92% 3.72% 2.47% 3.16% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

“I urge the government to perhaps step in and enact emergency legislation for the management of insurance claims on an equitable basis.” Mr Smith said he had yet to see insurance loss adjusters in action despite driving around Freeport and Grand Bahama to assess the “destruction first hand” following Dorian’s near-two day stall over the island. The insurance damage assessment and claims processing is now under way in Grand Bahama (see other article on Page 1B), although the scale and nature of the damage in Abaco has inhibited adjuster access to the hardest hit areas of Marsh Harbour and the surrounding cays. Emphasising that he did not wish “to pick a fight” with the insurance industry, and understood the “valuable role” it played in protecting hundreds of millions of dollars in commercial risks, Mr Smith said his concerns were founded on what he argued is a lack of protection for consumers compared to other countries. “My anxiety and oftexpressed frustrations are a result of the model of governance that unfortunately exists in The Bahamas,” he told Tribune Business. “The normal victim, consumer and claimant protection that exists in the more sophisticated economies simply does not exist in The Bahamas... “Regrettably, we don’t have an Insurance Commission that is an effective watchdog over the insurance companies. The Insurance Commission does its best, but it does not have the tools to manage the insurance industry in The Bahamas

- both to promote insurance and to protect the insured. “Our judicial system is quite unlike the Americans, our neighbour, which has embedded in their system jury trials and punitive damage awards in civil cases which have held big business, financial institutions and government to account,” Mr Smith added. “Many of the insureds in The Bahamas are not sophisticated consumers. They don’t have access to legal aid. The normal mechanisms that weigh in favour of the consumer, particularly in times of crisis after a hurricane, don’t exist in The Bahamas. I beg the insurance companies and their adjusters not to take advantage of people in Grand Bahama and Abaco.” Pointing out that mortgage borrowers, both homeowners and businesses, were required by the lenders to take out all-perils catastrophe insurance and other products to cover their homes, Mr Smith said these institutions were noticeably absent when it came to protecting clients in the event of a claim. “Regrettably, when claims are to be made, all of the societal, economic and capitalist constructs that force people to buy insurance don’t exist to also protect them and make sure their claims are properly dealt with,” Mr Smith said. “Insurance companies always hire the best and brightest legal minds, and are able to pay them to delay and contest cases for many years and prevent them coming to trial. The victims of disasters and losses are not very often, by the nature of their circumstances, able to resist.”