Extraordinary announcement on the solvency situation of the Subsidiary of the Company
2019. 11. 08.
CIG Pannónia Life Insurance Plc. (Registered seat: 1033 Budapest, Flórián tér 1; company registry number: Cg.01-10-045857; hereinafter: the “Company”) hereby notifies its shareholders and the capital market participants that the CIG Pannonia First Hungarian General Insurance cPlc (hereinafter referred to as: EMABIT), 100% subsidiary of the Company dealing with non-life insurance was obligated by the Hungarian National Bank to prepare a recovery plan. In the abovementioned plan to be prepared within two months, the level of solvency capital shall be set at the level covering the needs, or the risk exposure of the subsidiary shall be reduced.
The financial situation of the Company (Life Insurance Company) is stable. Its solvency capital is on 312%, which is still three times more than the statutory level. Our clients' insurance contracts and investments are safe. They are not affected in any way by the solvency situation of the subsidiary. The number of clients and also the premium income of the Company increased in 2019. Our quarterly stock exchange report will be released on 19 November.
With regard to the announcement in compliance with point c) Paragraph (1) Section 267 of the Act on Business of Insurance (hereinafter referred to as: Bit.) according which there is a risk that the solvency capital will reduce under the statutory level in the next three months, the Hungarian National Bank, pursuant to Section 309 of the Bit., obligated the subsidiary to prepare a recovery plan.
The subsidiary has already begun improving its risk profile and preparing the recovery plan.
CIG Pannonia Life Insurance Plc.
