Further to a News release issued by the Office of the Prime Minister, by order of the Supervisor of Insurance, Ministry of Finance, we wish to respond as follows:

A letter was hand delivered to us on 19th. December 2005 giving notice of cancellation.

The letter also provided for the company to appeal to the Minister of Finance regarding the Supervisors decision, within thirty days of the notification. Thirty days would have taken us to the 18th. January 2006.

We responded to the Supervisor of Insurance on 20th. December 2005 seeking clarification on Section 14(2) of the Insurance Act which states: "So long as a company remains under Liability in respect of local policies belonging to any class of insurance business, the Supervisor shall NOT cancel the company's registration in respect of that class unless he is satisfied that adequate provision has been made for that liability and that adequate arrangements will exist for payment in Grenada of premiums and claims on those policies."

We have had no response to our letter. We would also like to draw the public's attention to Section 17(1) of the Insurance Act which states inter alia: "Notwithstanding section 16, upon the cancellation of registration under this Act of a company, it shall be lawful for the company to continue to carry on business relating to policies issued before the date on which it is notified of the cancellation...."

We would like to assure the public that notwithstanding the notice from the Supervisor of Insurance, we remain committed to meet ALL our Liabilities.

We propose to make payment for settlement of those liabilities within the thirty day appeal time as provided by the Insurance Act following which we expect our registration to be reinstated.

(Submitted by David S. Phillip - Managing Director - National Guarantee Insurance Company Ltd. (NALGICO)