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MNB orders oversight commissioner at Dimenzió after court suspends licence revocation

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MNB headquarters in Budapest (Image by Jessica Fejos)

The National Bank of Hungary (MNB) yesterday said it has ordered an oversight commissioner at insurance association Dimenzió after a court suspended its earlier decision to revoke the associationʼs licence and transfer its policies.

The commissionerʼs mandate will last until the MNB winds up a probe at Dimenzió, but no longer than 180 days. 

The MNB had previously appointed an oversight commissioner at Dimenzió one year earlier after uncovering compliance shortfalls. Last November, the central bank (and financial market watchdog) revoked Dimenzióʼs operating licence because of an "unsustainable business model and unsolved capital problems" and ordered the transfer of Dimenzióʼs policies to a peer.

In February, CIG Pannonia Life Insurance and Pannonia Pension Fund won a bid to take over the policies. They included deferred annuity products with some HUF 41 billion of technical reserves, a life insurance portfolio with more than HUF 2 bln of technical reserves, and ongoing life annuities with about HUF 0.4 bln of technical reserves.

The central bank noted that the Municipal Court of Budapest had suspended its revocation of Dimenzióʼs licence and the order to transfer its policies in a binding decision on May 24.

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