The Hong Kong Insurance Authority (HKIA) has exercised its powers under Section 35(2)(b) of the Insurance Ordinance to appoint Derek Lai, Forrest Kam, and Oliver Cheng of Deloitte as Joint and Several Managers of Tahoe Life Insurance Company. This intervention aims to take full control of Tahoe Life’s affairs and property.
Since mid-2020, the HKIA has been implementing supervisory measures to protect policyholders, urging Tahoe Life’s management and shareholders to address issues related to investments in related party transactions. However, despite appointing advisors in August 2023 to provide recommendations, Tahoe Life has failed to submit audited financial statements for 2022 and 2023, attract new strategic investors, and improve corporate governance.
The majority shareholders’ involvement in multiple debt proceedings has further complicated the situation. The appointment of Managers is now deemed essential to assess Tahoe Life’s financial and solvency status, preserve capital resources, and identify recovery solutions for policyholders.
Previous measures by the IA have enabled Tahoe Life to meet its insurance obligations. Policyholders are advised to carefully assess their situations and avoid making hasty decisions.
In a coordinated regulatory action, the Bermuda Monetary Authority (BMA) has appointed Marcin Czarnocki, Derek Lai, Forrest Kam, and Oliver Cheng as Joint Provisional Liquidators (JPLs) of Tahoe Life by order of the Supreme Court of Bermuda. This action aims to ring-fence Tahoe Life’s assets to protect policyholders, rather than to wind up the company.
The HKIA has been working closely with the BMA on regulatory actions against Tahoe Life, given its incorporation in Bermuda. The JPLs’ appointment in Bermuda complements the efforts of the Managers in Hong Kong to determine Tahoe Life’s financial and solvency status and implement effective recovery solutions.
