Eurovita, there is an agreement to bail out but freeze on redemptions until September – Corriere.it

Eurovita, there is an agreement to bail out but freeze on redemptions until September - Corriere.it

[ad_1]

The agreement for the rescue of Eurovita has been found. The willingness given by the large banks to act as guarantors for the small distributing banks was the turning point in the negotiations. In one of the last meetings at the Ministry of Economy and Finance, Generali, Intesa Vita, Poste, Unipol and Allianz had confirmed their willingness to take part in the Eurovita rescue plan, provided that the banks were willing to grant credit lines for policy redemptions. The medium-small institutions, however, had in turn asked the larger banks to act as guarantors, to avoid having to bear all the weight, with the risk of insolvency for some institutions. The terms of the agreement will be made official by Friday 30 June, the current term of the freeze on redemptions imposed by IVASS, which however will be extended and will probably go on until September. Before June 30, the boards of the five insurance companies involved in the rescue of Eurovita will have to approve the plan.

Saving and dividing into 5 branches

The rescue provides for the newco made up of Generali, Unipol, Allianz, Poste and Intesa to take over the company and only later to split Eurovita’s activities into five business branches. Policies should also be included in the division unit linked, despite the hypothesis that they would remain in Eurovita. But, given that the company and the brand would effectively disappear with this operation, this scenario appears unlikely. Those who have taken out a policy with Eurovita will therefore find themselves having a contract with one of the large insurance groups that have set up the newco, with all the guarantees that this entails.

Redemptions blocked until September

To allow the procedures connected with the rescue operation to be completed, Ivass, the Insurance Supervision Institute, could decide to freeze the policies for a few more weeks, which means that everything would be postponed close to the month of August. Given the conceivable period that it will be decided to postpone the release to early September. Once the blockade ends, there will no longer be the advice of some experts and consumer associations, such as Adiconsum, to avoid the rush to redeem the policy, unless there are particular liquidity needs, and continue with the contract in order to avoid yield losses which would be inevitable taking into account inflation.

[ad_2]

Source link