MNB orders CIG Pannónia unit to prepare recovery plan
The National Bank of Hungary (MNB) ordered CIG Pannónia Első Magyar Általános Biztosító (CIG EMABIT), a unit of life insurer CIG Pannónia Életbiztosító, to prepare a recovery plan, setting a deadline of two months, CIG Pannónia Életbiztosító said, state news wire MTI reports.
In the recovery plan, CIG EMABIT must set the level of its warranty capital to a level covering the requirement or reduce its risk exposure.
CIG Pannónia Életbiztosító said it had already started improving the unitʼs risk profile and preparing the recovery plan.
It added that the life insurance companyʼs financial position is stable, its capital adequacy ratio is 312%, its clientsʼ insurance contracts and investments are safe and are not affected by the warranty capital situation of the subsidiary.
On October 24, MNB suspended the Italian cross-border gaming surety insurance activities of CIG EMABIT pending the close of an oversight probe or a period of up to one year.
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