Colonial Life Insurance Company Limited - From Growth to Failure: An Analysis of Reported Financial Activity 2003-2008

The collapse of Colonial Life Insurance Company (Trinidad) Limited caused one of the most significant financial events in recent history in the Eastern Caribbean region. The significance of the groups collapse warranted the establishment of a commission to gather information on its root causes. There is however still uncertainty in much of the detail of CLICO’s operations. This paper utilizes evidence presented in the national commission of enquiry of CLICO’s collapse and other associated financial documents to discuss the reported financial activity of the group between 2003 and 2008. The analysis shows investments in unproductive asset expansion, declining income, bleeding cash positions over the period, and a business structure unlike a typical insurance company. The paper provides useful analysis for those in need of information regarding the failure of the region’s most prominent firm.