Danish insurer complies with DFSA’s €5m liquid asset demands

Written by Adam Cadle

07/01/2020

Danish insurer, Gefion Insurance, has complied with the Danish Financial Supervisory Authority’s (DFSA) order to have liquid assets of at least €5m by end of December 2019 towards the end of February 2020, following further investment from shareholders.

In a statement published at the end of last year, the DFSA said it considered Gefion Insurance to have “serious liquidity problems”.

“Hence, the interests of the policyholders and beneficiaries are at risk,” it said.

In October last year, Gefion had closed the placement of SII-compliant subordinated notes in the aggregate principal amount of €6m with funds managed by Fermat Capital Management.

The net proceeds from the note issuance, Gefion stated, “will be used to strengthen Gefion’s capital bases and support its on-going business in the European non-life insurance market”.

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