The Eurovita case continues to create nervousness. It’s not just the beyond 350 thousand savers watching the developments in the story, but also the banking sector, which distributed the policies to its customers.
At the end of January, Eurovita was commissioned by IVASSwhich also decided to block the redemptions of insurance and capitalization contracts.
A stop, which, at least for the moment, has been set until March 31, 2023waiting to find out how the capital problem will be solved.
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Insurance companies, why Ivass’s move protects Eurovita customers and what’s happening now
Before proceeding, it is better to take stock of the situation.
Eurovita, which is controlled by Cinven background, has some solvency issues. These are not particularly serious problems to jeopardize their effectiveness: IVASS’s decision to block redemptions was taken to prevent all clients monetize their investments at the same timefurther weakening the company.
A decision taken to allow commissioner Alessandro Santoliquido to look for a buyer, that it is willing to inject 200 million euroswhich Ivass had previously asked Cinven.
To come forward, at first, it had been the private equity fund Jc Flowerswho, in addition to being specialized in insurance, had been a shareholder of Eurovita until 2017.
Jv Flowers had put on the plate something like 300 million eurosbut the deal fell through at the last minute.
Eurovita, the actors involved in the affair
There are at least 350,000 savers who have taken out policies with Eurovita. People convinced to bet on of risk-free products.
The Eurovita case, however, is shaking the entire insurance sector as a whole.
As reported by the newspaper The printoperators in the sector are worried because there are also many savers with other companies who are redeeming their policies, worried about what is happening.
The alert appears to be particularly high: also because, in Italy, it is the first time separate managements have been frozen.
To talk about the Eurovita case today is also the newspaper Il Sole 24 Ore, in the article indicating how they may be needed up to 400 million euros.
I am many banks, which have distributed Eurovita policies. Among these, cited by La Stampa, there are:
- Phinecus;
- Bank Fideuram;
- We believe;
- savings bank;
- Deutsche Bank;
- Banca Popolare di Puglia and Basilicata.
These realities are continuing to monitor the situation.
In the meantime some reassurances come from Aniathe association of Italian insurance companies, which underlined how there is no need to worry about the state of solvency of Italian life insurance companies.
One of the greatest dangers, however, would be represented by compulsory liquidation of the company: a risk which, however, is very, very remote.
This would be a completely new scenario for an Italian company, even if a worrying non-Italian precedent is already present. We are talking about Lehman Brothers.
The amount requested for Eurovita, however, for the moment it seems to be affordable.
Questioned by The print, Joseph D’Ortaexpert in the banking and insurance sector, he explained to the newspaper La Stampa That “Eurovita is not a huge reality and therefore a solution will not require too much effort. If investors were to find themselves with losses of 20-30% and the exit blocked the reputation of this product would be damaged. A blow that the system cannot afford”.
Right now, one of the hopes is that a white knight may come that can save the company, such as large banking groups or companies such as Generali or UnipolSai.