MILAN – Italy’s insurance regulator IVASS has halted the redemptions of investment products managed by life insurer Eurovita, the special administrator appointed by IVASS to run the company said on Tuesday.
Eurovita, owned by British private equity firm Cinven, last month became the first Italian insurer to be placed under special administration by the regulator.
Following the measure, Eurovita has been hit by a raft of early redemption requests, IVASS-appointed commissioner Alessandro Santoliquido said in a statement.
“Starting from Feb. 6 at 1900 GMT, IVASS has decided … to halt the redemption of insurance contracts … until March 31, the date on which the special administration introduced on Jan. 31 is due to end,” he added.
“The measure aims to allow the commissioner to have sufficient time to work out a solution that protects all of the insurer’s customers, avoiding unchecked outflows of large amounts of managed savings.”
IVASS had told Eurovita last year to quickly boost its capital reserves by around 250 million euros ($267 million), prompting its owner Cinven to seek a sale, sources had told Reuters.
Cinven has failed to clinch a deal, in its second failed attempt in two years to find a buyer, leading IVASS ultimately to take Eurovita under its management. ($1 = 0.9353 euros)