26 July 2024
The Insurance Authority (IA) today (26 July 2024) invoked powers under Section 35(2)(b) of the Insurance Ordinance (Cap. 41) (IO) to appoint Mr Derek Lai and Mr Forrest Kam of Deloitte Touche Tohmatsu as well as Mr Oliver Cheng of Deloitte Advisory (Hong Kong) Ltd as the Joint and Several Managers (Managers) to take full control of the affairs and property of Tahoe Life Insurance Company Limited (Tahoe Life).
“The IA has applied a series of supervisory interventions on Tahoe Life since mid-2020 to protect policy holders, while urging its management team and majority shareholders to identify a viable solution to resolve the issues arising from investments linked with related party transactions,” said an IA spokesperson.
“Despite Advisors 1 having been appointed under Section 35(2)(a) of the IO in August 2023 to provide Tahoe Life with recommendations and guidance, the company has failed to submit audited financial statements in respect of 2022 and 2023, to deliver on promises to bring in new strategic investors and to improve on its corporate governance. Given that its majority shareholders are embroiled in multiple debt proceedings, appointment of the Managers is necessary to ascertain the latest financial and solvency position, preserve capital resources and identify optimal recovery solutions in the best interest of policy holders,” the spokesperson added.
Previous ring-fencing measures imposed by the IA have reinforced the ability of Tahoe Life to meet its insurance obligations. We would like to remind the general public that since life insurance products are designed to reach maturity over a fairly long period of time, policy holders are advised to carefully assess their own circumstances and avoid making hasty decisions.
All policies issued by Tahoe Life will not be impacted since the Managers are responsible for maintaining a full range of business operations covering customer service, premium payment and claims settlement. On specific enquiries, policy holders may contact the Managers by telephone on 2238 7006 during office hours (Mondays to Fridays, excluding public holidays) from 9 a.m. to 12 noon and from 2 p.m. to 5:45 p.m., or via email at [email protected].
Ends
Note:
1 Please see the press release issued by the IA on 16 August 2023 .