Cinven injects 100 million euros, 353,000 savers involved – Corriere.it

Something moves. Eurovita, the insurance company with receivership and with the redemption of the policies frozen, received a liquidity injection of 100 million from the shareholder Flavia HoldCo Limited; it is a company belonging to the private equity fund Cinven which has formed the insurance group since 2016 by aggregating Ergo Previdenza, Old Mutual Wealth Italy (formerly Skandia) and Eurovita Assicurazioni, to which Pramerica Life was also added at the end of 2019. To receive the payment, reads a note, Eurovita Holding.

Following the provisional management arranged by Ivass for Eurovita Holding and Eurovita Spa, the commissioner is proceeding with the activities aimed at seeking a possible solution aimed at strengthening the company’s capital. Cinven has been working for some time – explains the fund itself – with the management team and, more recently, with the Commissioner of Eurovita to find a long-term solution to the Company’s capital base. In this context – adds Cinven – Fondo 5 has injected 100 million euros into Eurovita, in line with its desire to help the Company and the Commissioner find a solution, to the benefit of the company and its stakeholders.

What the policies contain

The new resources will be used to restore Eurovita – now under the provisional administration of Commissioner Alessandro Santoliquido – in bonis: more than 200 million euros are needed to raise the Solvency II index and take it beyond the safety limit. It was requested by IVASS. the first the first in the Life business to be commissioned and many savers are involved: there are 353,000 customers, with 413,000 policies, some of which subscribed under the Ergo brand, Old Mutual Wealth Italy, Pramerica Life, groups gradually acquired by the hub insurance property of the English fund Cinven for a total of 15.3 billion euros. The policies in question envisage products with investments in government bonds with BTPs which are however covered by increases in interest rates. A shield that does not concern investments made in other government bonds, such as German and French ones and which are also in the separate management of Eurovita. If the portfolio were liquidated, the average losses for the approximately 400,000 savers involved should be below 10%.