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Supervisors decided to close Commercial Value

26 February 2010 / 11:02:34  GRReporter
5511 reads

To close the private insurance company Commercial Value decided the Supervisory Board for private insurance, but because its members are resigning and are performing their duties until the appointment of new members, their decision must be confirmed by the Deputy Minister of Finance Filipos Sahinidis. If he confirms the decision of the supervisors, the insurance company whose name is already quoted for months by the media as the next victim of the private insurance market in Greece, liquidators will enter. In Commercial Value insured are over 400 000 drivers and 50 000 people have life insurance. If liquidation is reached, the files of the drivers will be transferred into a mutual fund, and the liquidators will have to decide the fate of life insurance. The company also owns 35 percent of the shares of Aspis Bank.

Bids from two companies (Russian Borodino and English AnaCap) for the purchase of the troubled insurance company were presented before the Supervisory Authority for Private Insurance and the Bank of Greece. Currently the reasons of the supervisors, who rejected the two bids amounting to €150 million is unknown. The losses of Commercial Value for 2009 exceeded €50 million. .

Meanwhile, another private insurance company Euro Pisti (Ευρωπαϊκή Πίστη) reported minimal growth in turnover and profits. Last year the company suffered a major disruption because of Piraeus Bank, which had a contract for insurance services, but the bank switch to other insurers. Turnover of Euro Pisti in life insurance has increased by 106.4%, in general insurance by 2,5% and in car insurance 19.8%.

Experts predict a severe year for private insurance in Greece, not only because of the economic crisis in the country, but also because of turmoil in the industry, where 6 companies already have suspended business activities, while another ING decided to leave Greece. According to experts, after private insurers implement new rules for financial stability, many small firms will be forced to withdraw from the market.

Tags: ING Commercial Value Insurance Greece Aspis
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