Eurovita, the stew hypothesis is looming for the rescue to avoid the race for redemptions – Corriere.it

For the solution of the crisis of the Eurovita company, the stew solution is looming, with the five major insurance groups present on the Italian market which will take over the contracts and personnel while the banks placing the company’s products will intervene only marginally. This was reported to Radiocor by sources familiar with the dossier on which Eurovita’s extraordinary commissioner, Alessandro Santoliquido, is at work, under the direction of the Ministry of the Economy, responsible for safeguarding the stability of the financial system. The agreement must be reached between insurance companies on the one hand and banks on the other, on the basis of a now shared scheme, on which however there are a series of details to be fixed according to what is learned. Reason why it was necessary to postpone the summit to the ministry, convened on 20 April. It is possible that a new meeting with all the players around the table in via XX Settembre will already be organized in the first week of May. Eurovita has 250 employees who will be redistributed between Generali, Intesa Vita, Unipol, Poste Vita and Allianz.

Delicate appearance

The redistribution of the Eurovita company branches, which will be unpacked, is the most technically delicate aspect while the company brand will obviously disappear. Then there are the 350 thousand customers (of the banks) who have subscribed to the traditional branch I policies and the units of the company controlled by the Cinven fund (which will now see its investment fade together with the 100 million recapitalization paid when it was too late). Once IVASS lifts the redemption ban, customers will have no problems, if they want, in liquidating their investment. In any case, we are working on a high-profile solution that will reassure them and avoid a hasty escape. The massive requests for redemptions would cause losses due to the capital losses that would emerge in the financial statements of the companies due to the forced sale of the securities in the portfolio present in the various separate managements of Eurovita. Reassuring saver customers is the challenge that the companies involved in the bailout will have to face in a way that is not so much spontaneous but induced by the moral suasion of IVASS, an authority which is facing the first crisis in the sector under the aegis of the Bank of Italy since it was born, from the ashes of Isvap.