Slovakia’s regulator petitions to liquidate parts of Novis as insurer fights back

Written by Adam Cadle

09/06/2023

Slovakia’s regulator, Národná banka Slovenska (NbS), is to petition for the liquidation of parts of Novis Group, claiming that from October to July 2022, the insurer had performed insurance activities “imprudently in a way that harms interests of its clients and in a way that threatens its financial situation”.

The regulator has issued an order banning the insurer from doing various forms of life insurance, except where necessary “to enforce claims and settle liabilities”. Novis Insurance Company, Germany's Novis Versicherungsgesellschaft, Novis Compagnia di Assicurazioni of Italy, and Novis Poisťovňa, a.s. in Slovakia, are all under the spotlight.

Novis said it disagrees with the regulator’s decision and will take the matter to court.

In an online statement, the insurer said: “Novis has reviewed the decision signed by the NbS governor, Peter Kazimir, and is surprised by the number of errors it contains. Moreover, all the evidence that Novis submitted to the NbS was ignored. This even includes the expert opinion of a court expert from Vienna, who asserts that the NbS distorted the Solvency balance of Novis to such an extent that the expert used the term 'falsification' in relation to the NbS procedure.

“Novis is convinced that the NbS decision is incorrect and based on a flawed assessment of the facts and incorrect application of the relevant laws. Novis expects a fair process from the court, especially given that several important documents were deliberately not made available to it during the proceedings before the NbS.”

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