MILAN. Eurovita ends up in extraordinary administration and in the meantime a systemic operation is being prepared aimed at rescuing the company that has fallen into difficulty after the rate hike. The measure is ordered by a decree from the Ministry of Enterprise and Made in Italy, on a proposal from IVASS (the authority that supervises insurance). The bodies with administrative and control functions have been dissolved. Consequently, IVASS has appointed Alessandro Santoliquido as commissioner for the extraordinary management of both Eurovita Holding and Eurovita Spa. The supervisory committees of both companies will instead be composed of the president Antonio Blandini, with Sandro Panizza and Monica Biccari. Furthermore, “in order to ensure an orderly performance of the activities and to accompany the definition of a market solution by the bodies of the extraordinary administration” of Eurovita, the authority “extended until 30 June 2023 the suspension of the redemptions of the contracts of insurance and capitalization stipulated with Eurovita, arranged on 6 February 2023”.
353,000 customers are interested for 15.3 billion in assets involving more than 400,000 policies. The extension of the suspension for another three months will make it possible to fine-tune a systemic operation aimed at restructuring the company which was trapped by the sudden increase in interest rates decided by the ECB which, with the devaluation of the bonds in the portfolio, caused a drop below the lows of the asset indicator, the so-called solvency ratio.
Several banks and insurance companies are expected to take part in the rescue operation. The Economy Ministry on Tuesday brought together the main players in the system. A large system operation is being studied which involves the distributing banks (but not only) and the main insurers. Giants such as Intesa, Generali, Poste would be ready to evaluate a joint operation. An operation that has not yet been studied in detail. It will take a few weeks, at least. Months to become enforceable.
According to reports from the Radiocor press agency, there are two hypotheses: the first envisages the entry of insurance companies into the capital while the banks will ensure credit lines for Eurovita. The second option, the most popular so far, would consist of a joint intervention of banks and insurance companies in the capital. At least 300 million euros are needed after the shareholder, the Cinven fund, has already injected 100 million euros.