Because of the financial problems it faces, the Superintendence of Insurance and Reinsurance of Panama ordered the forced liquidation of La Floresta de Seguros y Vida.

“The forced liquidation of the insurance company La Floresta de Seguros y Vida, S.A. has been ordered at 9:30 a.m. on November 18, 2019, based on the regulation that regulates the insurance activity and dictates other provisions,” informed the Superintendence of Insurance and Reinsurance (SSRP).

The notice explains that “in the same way we communicate that when the insurer is in a state of Forced Liquidation, the terms of prescription of any right or action of which the insurer is the owner are suspended for up to six months and the terms in the administrative processes in which the insurer is a party and no sentence may be executed against it, except those that pursue the execution of a pledge, mortgage or real guarantee.”

The resolution specifies that the insurer is in serious financial, operational, technical, accounting and auditing problems, and the Administrative Control Board has made every effort to obtain a buyer or investor interested in refloating the company, but it has not been achieved.

For these reasons, the administrators considered that forced liquidation is the only option to protect the interests of policyholders, contractors, employees, reinsurers and creditors.

See full resolution.