Italian insurance regulator IVASS last year asked Cinven
to recapitalise Eurovita but the fund delayed in the hope of
clinching a sale of the company.
IVASS decided to place the company under temporary administration after a sale to rival private equity firm JC Flowers collapsed at the last minute in the absence of a reinsurer ready to take part in the deal.
The temporary administrator that Italian insurance
regulator IVASS has put in charge of Eurovita after its solvency
ratios fell below minimum thresholds said they kept working on
plans to rebuild the insurer's capital reserves.
"As a first important contribution ... Eurovita Holding SpA
has received a capital contribution of 100 million euros ...
from its shareholder," they said in a statement.
While there is no final figure, Eurovita is likely to need
roughly four times as much money in total to rebuild its
buffers, a person with direct knowledge of the matter said,
confirming Italian press reports.
To stem outflows Eurovita has halted early redemptions of
its insurance policies until the end of March.
Banks that distribute Eurovita's policies as well as
other Italian insurers could be called upon to provide the
necessary funds to help ensure savers' confidence in the life
insurance sector, the person close to the matter said.
($1 = 0.9406 euros)
(Reporting by Valentina Za, editing by Cristina Carlevaro and
Keith Weir)
