Interest costs in excess of $900 million, losses from its non-life insurance subsidiaries of almost $400 million and one time charges for restructuring costs of over $200 million have caused Life of Jamaica to post losses of $1.054 billion by the year ended December 31, 1996.
This position is consistent with statements made by the company on filing its third quarter results and more recently by the Chairman at an Extraordinary meeting of shareholders held in late June 1997 to ratify the recently concluded agreement with FINSAC.
The recently announced sale of LOJ’s banking assets in Citizens Bank and CIBC along with the interim financing package which has injected approximately $1.9 billion in LOJ to retire high cost debt will ensure that these losses will not be repeated and that the company will return to profitability in 1997.
Milverton Reynolds, President of LOJ is very confident about the outlook for the company and says, “We have weathered the storm, the worst is definitely behind us and we are now equipped to flourish in the Jamaican Life Insurance Industry”.
