Reinsurance contract stripped out means annual report shows deeper solvency erosion
The regulator has ordered Gefion to restate figrues in its 2018 annual report - causing the solvency to weaken further.
The Danish FSA ordered Gefion to strip out a reinsurance contract from its 2018 annual report.
This meant the final solvency figure in the report is down as low as 0.49, compared to the previously reported 0.72.
It also means the company equity fell to around minus £200,000 (DKK -1.9m).
However, Gefion says the latest solvency figure in November last year is 0.86 and it is working with investors to boost it beyond 1.0.
It also does not agree with the decision of the Danish FSA.
Reinsurance issues have plagued unrated insurers in the last 18 months, with Gefion’s Danish rival Alpha collapsing.
It comes as the compensation scheme for failed carriers revealed last week the millions spent on compensating customers of unrated failed insurers.
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