Italy may extend suspension of early redemptions of insurer Eurovita's products (updated)

UnipolSai Assicurazioni SpA

08/06/2023 17:32

(Adds details from sources, background)
       ROME, June 8 (Reuters) - Italian authorities may extend
a temporary suspension of early redemption of ailing life
insurer Eurovita's products beyond the June 30 expiry, a
consumer association said on Thursday after a meeting with the
company's special administrator.
    Authorities and financial firms are negotiating plans to
rescue Eurovita by dividing up the troubled life insurer among
leading players in the industry.
    As a deal remains elusive, an extension of the temporary
halt to the early redemption of Eurovita's products is being
considered, the ADOC consumer group said in a statement.
    Eurovita, owned by Britain's Cinven, is the first insurance
company in Italy to be placed under special administration.
    The rescue deal under discussion envisages that top insurers
Generali  GASI.MI , UnipolSAI  US.MI , Intesa Sanpaolo  ISP.MI ,
Allianz  ALVG.DE  and Poste Italiane  PST.MI  each take on a
portion of Eurovita's assets.
    Insurers want banks that distributed Eurovita products to
provide the financing for any early redemptions by customers,
people briefed about the matter told Reuters, adding parties are
at odds over the cost of such financing.
        "There are still some sticking points on the potential,
identified solutions which would see the protection of savers as
their main element," ADOC said without providing details.
        ADOC released its statement after it and other consumer
groups met on Wednesday with Eurovita's special administrator
Alessandro Santoliquido.
    Eurovita ran into trouble when higher interest rates reduced
the value of its government bond holdings and also prompted
customers to redeem their insurance policies early to reinvest
the money into higher-yielding products.

 (Reporting by Stefano Bernabei and Giuseppe Fonte, editing by
Federico Maccioni and Susan Fenton)
 ((giuseppe.fonte@thomsonreuters.com; +390680307711;))