Eurovita: thriving balance sheet and insurance flop
All the latest news on Eurovita, the insurance company under extraordinary administration. The article by Emanuela Rossi
Work continues around Eurovita, the insurance company placed into extraordinary administration by the Ministry of Enterprise and Made in Italy since the end of March on a proposal from IVASS.
According to Milano Finanza, the meeting that should have been held last Thursday in Via XX Settembre to define the rescue plan was skipped without a new call. At the same table were expected – in addition to Commissioner Alessandro Santoliquido and representatives of the Ministry of the Economy – the main distribution banks (Sparkasse, Fineco, Credem and Fideuram) and the five main insurance groups on the market (Poste Italiane, Intesa Sanpaolo, Generali, Unipol and Allianz), entities that entities should participate in the plan to recapitalize Eurovita. The economic daily reports that important details are still missing to be defined but that the aim is to close by the end of June. At stake – we recall – there are 353,000 customers who have taken out policies for 15.3 billion.
WHAT EUROVITA IS AND WHAT IT DOES
Established in 1989, Eurovita began operating in 1992. Specialized in the life sector, as at 31 December last it had 258 employees, all with permanent contracts, mostly white collars and managers. From the visura it emerges that the company has ten shareholders among which the most important stands out, Eurovita Holding Spa, which owns 90,332,178 ordinary shares, followed by Banca Popolare dell'Alto Adige which owns 160,822 ordinary shares. The other eight partners are all part of the Bonacina family. The share capital is 90,498,908 euros.
THE PROBLEMS OF THE COMPANY
Eurovita's problems emerged forcefully last September, when IVASS asked to recapitalize the company, which in the meantime had reached the minimum Solvency II threshold. As of June 30, 2022, the latest data available, the index was already at 117 percent. This was followed by the suspension of redemptions of insurance and capitalization contracts stipulated by customers (in February), the company's receivership (on March 29) and, the following day, the extension of the suspension until June 30.
THE LATEST BUDGET AVAILABLE
In the latest financial statements filed by Eurovita, relating to the 2021 financial year, we read that the profit amounted to 36 million and 349 thousand, up from 11.2 million a year earlier, while the pre-tax profit amounted to 49 million. In total, however, the comprehensive income statement fell from 70.9 million in 2020 to just over 23 million in 2021. Revenues also fell, from over 1.6 billion to more than 1.5 billion, net premiums from over 1 1 billion in 2020 to just over 1 billion, and costs from 1.6 billion to almost 1.5 billion. And if the capital was stable at 90 million and 498 thousand euros, the shareholders' equity showed a decline from 605 million and 123,324 euros to 497 million and 402,982 euros.
As far as liquidity is concerned, the liquidity deriving from operating activities, which exceeded one billion, and that deriving from financing activities to 92 million from a loss of over 362 million, while the liquidity deriving from investment activities decreased, from -33.1 million at the end of 2020 to -1 billion and 155 million at the end of 2021.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/eurovita-bilancio-flop/ on Tue, 25 Apr 2023 05:51:23 +0000.