From Cinven come 100 million for Eurovita
Here comes a breath of fresh air for Eurovita, the insurance company commissioned by IVASS in recent days. The private equity fund Cinven, which controls the company through the British company Flavia Holdingmade a payment of 100 million euros lost fund, on capital account. This was announced by the company, which defines the payment as a “first important contribution” as part of capital strengthening activities.
Redemption block
Last January 31st IVASS ordered the receivership of Eurovita, an insurance company specializing in life policies, appointing commissioner Alessandro Santoliquido. On 6 February, Ivass itself blocked requests for reimbursement of contracts until March 31st. The measure, explained Ivass, was taken because of the strong weather ransom requests by customers who would have risked compromising the stability of the insurance company.
Capital strengthening
The previous year, Ivass itself had taken over the difficile patrimonial situation of Eurovita and requested a strengthening of the capital reserves of at least 250 million. The decision to commission the company came following the failure of Cinven’s attempts to sell it.
System solution
Eurovita has approx 400 thousand customers who have invested in their own policies. The commissioning and blocking of redemptions is a measure that it has no precedent among Italian companies. Commissioner Santoliquido, according to rumors circulated, is working on a “system” solution for protect customers. Solution that would pass through the involvement of others Italian companies, banks and promoter networks. The solution must arrive by 31 March when the IVASS provision expires. It is unclear how much the risk of losses will be for customers.