Cattolica Assicurazioni begins remedy plan following IVASS inspection

Written by Adam Cadle

18/01/2021

Cattolica Assicurazioni’s board of directors has started to work on a remedy plan following the Institute for the Supervision of Insurance’s (IVASS) inspection into governance structures and risk management systems.

IVASS said that the insurance company’s board of directors neglected to ensure the necessary consistency between the risks assumed by the company and its overall solvency needs.

The ability of the board to fully assess the risk/return profiles relating to certain relevant business decisions concerning the sales channels was limited, IVASS said. In particular, the bancassurance transaction with Banco BPM, signed in 2018, was highlighted.

IVASS said it expects a rapid completion of the capital strengthening through the placement of the second tranche of the capital increase for €200m.

In June, the insurance company was asked by IVASS to strengthen its capital by €500m and to draw up a plan to boost its solvency and liquidity position.

Cattolica said IVASS had highlighted the weakened solvency position of the insurer “as a consequence of the deterioration of the financial markets following the spread of the COVID-19 pandemic”.

Related Articles