The funding will be used to strengthen Gefion’s capital base
Troubled unrated insurer Gefion has had a €6m cash injection.
In a statement Gefion said it had ”closed the placement of Solvency II-compliant subordinated notes in the aggregate principal amount… with funds managed by Fermat Capital Management, LLC (“Fermat”)”.
The funding will be used to “strengthen Gefion’s capital base” and support its ”ongoing business in the European non-life market”.
Gefion previously received €10m in July 2017 from Fermat.
The Danish insurer had been ordered to raise capital to improve its solvency ratio, which following the Danish regulator’s latest intervention is at 86%, the insurer has been ordered to cease the expansion of its business.
Commenting on the cash injection, chief executive Tonny Anker-Svendsen said: “We are proud that Fermat - one of the leading insurance capital investors - wants to expand its partnership with Gefion at a crucial point in time by investing in the continued development of Gefion.
”[Yesterday’s] announcement validates our innovative business model and our ability to source capital from the highest-quality investors within the insurance space. This transaction is a strong endorsement of Gefion and will support our on-going strategic investor conversations.”
Last month it was revealed that Gefion is embroiled in a legal confrontation with a Lloyd’s broker.
It filed a law suit along with bankrupt Qudos Insurance AS alleging they have together lost £8.8 million because of inefficiencies in claims management processes.
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