COLONIAL Life Insurance Co (Trinidad) Ltd (Clico) has reported a profit after tax of $2.3 billion for the year ended December 31, 2023.
According to its consolidated financial statements, published on its website on July 1, Clico said this represents a 271 per cent or $1.68 billion increase in profits for 2023, compared to $621.4 million in profits for 2022.
The insurance company also reported a $1.99 billion gain on the disposal of its subsidiary, Methanol Holdings International Ltd, and generated $958 million in gross profit from its energy operations.
In December 2023, Clico completed the sale of its subsidiary MHIL to Consolidated Energy Ltd (CEL).
It sold 5,653,700 shares or 56.53 per cent of the issued and outstanding shares in MHIL. Proceeds on the sale of subsidiary, net of cash disposed and direct cost was $1.56 billion.
Through this transaction, Clico effectively relinquished control of MHIL and the company recognised a gain of $1.99 billion on the sale.
However, Clico's auditors – KPMG Chartered Accountants – issued a disclaimer of opinion in their report attached to the financial statement, saying they were denied access to critical information about the MHIL transaction.
"We were unable to obtain sufficient, appropriate audit evidence over the MHIL transactions, as we were denied access to the necessary audit working papers and group reporting from the subsidiary in order to allow us to complete the required audit procedures.
"Consequently, we were unable to determine whether any adjustments might have been necessary in respect of the consolidated statements of profit or loss, other comprehensive income changes in equity and cash flows for the year then ended, " KPMG said in its report.
"Because of the significance of the matters described in the bases for 'disclaimer opinion' section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an opinion on these consolidated financial statements," it added.
KPMG also said it was denied access to information about Clico’s investment in CL World Brands Ltd.
In 2008, Clico was a wholly owned subsidiary of CL Financial Ltd. Effective February 13, 2009, the Central Bank assumed control of the company, exercising its emergency powers under section 44(D) of the Central Bank Act.
On September 10, 2009, the Government injected additional capital into Clico by the acquisition of ordinary shares and preference shares.
This transaction resulted in the government's ownership of 49 per cent of the share capital of the Clico.
In 2018, CL Financial Ltd entered involuntary liquidation and in 2022, the Central Bank relinquished its emergency control of Clico.
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