Ivass in Cattolica: a capital increase of half a billion is needed by September


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The insurance supervisory institute calls for a strengthening of the capital solidity that tensions on the markets have caused to creak

Catholic Foundation: over 3 million to social realities in 2019

The insurance supervisory institute calls for a strengthening of the capital solidity that tensions on the markets have caused to creak

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Cattolica must make a capital increase and must do it quickly. By September 30th, immediately using all the 500 million delegation that is preparing to ask the shareholders at the shareholders’ meeting on June 27th and whose use was expected until 2025. It must do so not to seize growth opportunities, as ventilated by the company, how much to strengthen its capital solidity that the tensions on the markets have made creak.

The Ivass letter
To indicate the route to follow, in a peremptory letter dated May 27, is the Ivass. “The deterioration in the solvency conditions of BCC Vita, Vera Vita and the Group requires timely capitalization measures”, writes the insurance supervisory authority, after noting that the group’s solvency index has fallen to 103%. last May 22, “lowest value of the entire national insurance market” and “close to the regulatory minimum” of 100%.

The solvency ratio node
Even worse is the situation of Bcc Vita, a joint venture with Iccrea, whose solvency ratio reached 25% on May 15, and that of Vera Vita, in partnership with Banco Bpm, which on the same date had a solvency ratio of 65 %. Ivass therefore expects Cattolica to “strengthen the individual and Group solvency ratio by realizing, by 30 September 2020, the increase” from 500 million and at the same time adopting “the additional initiatives necessary to restore the online solvency index. with the risk appetite thresholds defined by the Group “, at a level between 160% and 180%.

Extraordinary board
By July 25, IVASS, which has requested that all bonuses be stopped, must receive a plan that “accurately describes” actions and timescales with which to face the “significant deterioration” of solvency. The issue will be dealt with on Sunday 31 May, in an extraordinary meeting, the Cattolica Board of Directors, who will have to make a note before the reopening of the stock exchange to clarify the situation.

The clash with the former CEO
The ex to Alberto Minali will not attend the meeting. After the proposed revocation of the board of directors at the shareholders’ meeting, the former CFO of Generali has resigned in the past by having a summons sent to Cattolica requesting damages for the revocation of the proxies suffered on 31 October. Meanwhile, sources close to the company point out that – thanks to the clearing of the markets – the balance sheet situation has also improved, with the solvency index rising to 130/135%. The deterioration, they explain, was initially weighed by the effect of the increase in the spread on the government securities of the Life business (€ 14 billion, equal to 55.2% of the entire Cattolica securities portfolio), to which adds the effect of the drop in risk free rates and the stock market.

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