Insr: Letter from the Norwegian Financial Supervisory Authority
Insr Insurance Group ASA ("Insr"), has received a letter from the Norwegian Financial Supervisory Authority (the "NFSA") in which the NFSA refers to the plan for a complete transfer of the Insr insurance business by the end of 2021 presented to the NFSA on September 9, 2020. The NFSA refers to that Insr is delayed in entering into agreements for a complete transfer of the insurance business. The NFSA expects Insr to have entered into agreements to divest the Norwegian and Danish run-off portfolios by mid-August 2021.
As Insr commented on in the Q1 report “we are working to find solutions for the run-off portfolios in Norway and Denmark to move the insurance risk out from Insr. There is a strong focus to succeed with these processes as well. This work is progressing, although it should be noted that these are quite complicated processes involving many steps.”
The NFSA's concerns related to the delayed divestment is closely linked to the solvency situation of Insr going forward and the NFSA says that it has grounds to fear that Insr “may be unable to meet the minimum requirements as to own funds or other capital adequacy and prudential requirements set out in law or regulations”. Insr had a solvency ratio of 107% after Q1 and has up of today no indication of being in breach of the solvency requirements. As was communicated in the Q1 report “there is a risk that the solvency ratio will go below 100% in 2021. The result development in Q1 has increased that risk. With the limited size of the business, the sensitivity to changes in the capital situation is large”. Insr will maintain an active dialog with the NFSA concerning the solvency situation.
For further information, please contact:
Hans Petter Madsen, CFO
T: +47 901 57 505
Insr Insurance Group ASA was established in 2009 and listed on the Oslo Stock Exchange, with headquarters in Oslo.The company’s main task and focus going forward are to wind down the insurance business.