The insurance companies of the Montepio group Lusitania Insurance Y Lusitania Life It has already lost 160 million euros of assets in the first five months of the year, according to the newspaper Público, in part due to the impact of the exposure of more than 20 million euros to securities of Russian companies in the heavy industry sector, including Gazprom. and to Novolipetsk.
According to information that Público obtained from an insurance regulator source, the Associação Mutualista Montepio Geral (AMMG) is obliged to send weekly reports to the Superintendence of Insurance and Funds and Pensions (ASF) on the evolution of the activity of the two insurers. .
The situation of the two companies is being viewed with apprehension by the control authority, according to the same source, so much so that the president of tenure (Montepio Mutualist Association), Virgílio Lima, is being called weekly to the facilities of the supervisor, the ASF.
The solvency margin ratio of the two insurers fell to 80%, below the minimum threshold of 100%, which set off alarms in the supervisor. This is an indicator that reflects the risks that insurers, in general, incur in investments made with premiums paid by clients.
An official source from the Montepio group told Público that it is monitoring the “price evolution of [títulos] as they cannot be sold given the limitations imposed on Russian assets” and added that “the payment of interest has already occurred after the start of the war and the imposition of sanctions on Russian assets of all securities held by Gazprom and Novolipetsk”. The group says it believes in a “progressive return to normality with a positive impact on the recovery of the value of these securities, whose price has been around 30%”.
Source: Observadora
