Gefion ordered to cease writing business

Written by Adam Cadle

27/03/2020

The Danish Financial Supervisory Authority, Finanstilsynet, has ordered Gefion Insurance A/S to cease writing business with immediate effect.

This comes after the regulator took the decision not to approve then insurance company’s recovery plan and the order is set to remain in force until Gefion either complies with its SCR or the regulator can approve a new plan. In a statement at the end of 2019, the regulator said it considered the insurance company to have “serious liquidity problems”.

Gefion stated: “Gefion Insurance has continued its capital raising efforts since the submission of the recovery plan in January with a view to restore the business to a level that will allow us to continue writing business in the short term.

“We are currently in on-going and progressed discussions with potential capital providers in order to secure sufficient own funds to meet the company’s solvency capital requirement and re-establish the solvency ratio to above 100 before the expiry of the recovery period.”

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