Due to the economic situation in Ukraine, the shareholders of Veltliner Insurance Company (Kyiv) have decided to merge their business and team of specialists with ASKO Donbass North Insurance Company (Druzhkivka, Donetsk region), the Forinsurer website reports.
It is noted that some of the shareholders of Veltliner Insurance Company became shareholders of PJSC “IC “ASKO DS”, as a result of which the companies will continue to operate under the single brand “ASKO DS”, which will expand the presence of the insurer in the regions throughout Ukraine and improve the quality of service and insurance services.
IC “ASKO-Donbass North” was registered in November 1991. Since 1994, it has been a member of the Motor (Transport) Insurance Bureau of Ukraine, and since 2015 – a member of the Insurance Business Association.
The company’s shareholders are Yevhen Matushevsky with a 20.74% stake, Oleksandr Ivanenko (17.91%), Viktor Spir (9.18%), Yuriy Kostyshyn (9.99%), Andriy Alekseev (4.82%), Ruslan Sheremet (9.99%), Olga Kopot (9.99%), Lyudmila Shopulko (7.34%) and Ruslan Lyudkevych (9.99%).
Veltliner Insurance Company was founded on November 12, 1997. Since 2012, it has been the legal successor of PJSC Insurance House “Evropeyskiy Mir”. It holds 28 licenses for voluntary and compulsory insurance, and offers more than 100 insurance products to its customers.
According to the National Securities and Stock Market Commission, as of the second quarter of 2023, 33.86% of the company is owned by Andriy Alekseev, 27.5% by Ruslan Sheremet, and four other individuals own stakes ranging from 9.1% to 9.9%.
Eurohold Bulgaria AD (Eurohold) and Euroins Insurance Group AD (EIG) have officially filed an arbitration claim against the Romanian government with the International Center for Settlement of Investment Disputes (ICSID) in Washington, DC, for more than EUR 500 million, according to the EIG website.
According to the report, the arbitration proceedings were initiated due to the Romanian state’s failure to comply with its obligations under the bilateral investment treaty between Bulgaria and Romania, including its obligation to ensure fair and equitable treatment for companies. EIG has been one of the largest investors in the Romanian insurance market, with investments of approximately EUR 280 million.
Eurohold and EIG are seeking damages for the actions of the Romanian authorities, which have damaged EIG’s business in Romania and completely destroyed it in the case of Euroins Romania, the statement said.
As reported, on March 17, 2023, the Romanian financial authority ASF revoked the license of Euroins Romania, which led to the bankruptcy of the insurer in June 2023.
October 25, 2023. Eurohold and EIG sent a notice of dispute to the Romanian government requesting an amicable settlement in the Euroins Romania case, but the Romanian government did not use this option.
Eurohold and EIG are being advised in the arbitration proceedings by Pinsent Masons, a leading multinational law firm, and by Gingov, Guginski, Ketchukov and Velichkov (DGKV), one of the largest and most prominent law firms in Bulgaria.
Euroins Insurance Group (EIG) is one of the largest independent insurance groups operating in Central, Eastern and South-Eastern Europe, represented in Ukraine by Euroins Ukraine.
Insurance companies-members of the Motor (Transport) Insurance Bureau of Ukraine (MTSBU) in January-March 2024 concluded 1.7 million contracts of compulsory civil liability insurance of owners of land vehicles (CMTPL), which is 5.02% more than in the same period of 2023.
According to data released on the MTSBU website, 74% or 1.2 million contracts were concluded electronically, 20% more than in January-March last year.
Members of the Bureau for the three months of 2024 increased the collection of insurance payments under CMTPL insurance policies by 26.2% compared to the comparable period of 2023 – up to UAH 2.1 billion, including UAH 1.673 billion (+41.12%) under electronic contracts.
The amount of the average insurance premium under MTPL contracts is UAH 1,262.8 (+20.1% compared to the same period of 2023).
The total amount of accrued insurance indemnities under domestic insurance contracts has increased by 31,16% – up to UAH 1,18 billion, including UAH 237,9 million paid using “europrotocol” (+17,34%).
The Bureau also recorded an increase in the number of settled claims for insurance compensation by 17.95% – up to 36.6 thousand, including data on the use of “Europrotocol” -13,206 thousand (+3.94%).
The average amount of insurance indemnity for claims of victims in Q1 2024 is UAH 32,270 thousand, which is by 11,2% more than in the same period of 2023 (UAH 29,019 thousand).
The ITSBU is the only association of insurers in Ukraine, carrying out compulsory insurance of civil liability of owners of inland motor vehicles for damage caused to third parties. 33 insurance companies are members of the Bureau.
On September 7, the National Bank of Ukraine (NBU) revoked the licenses of Gestalt Group Insurance Company and INTO Insurance Company (both based in Kyiv) to conduct financial services business.
According to the regulator’s website, the decision was made with respect to Gestalt Group due to the fact that the insurer’s ownership structure does not meet the requirements of Ukrainian legislation, and with respect to INTO for failure to comply with the National Bank’s decisions to eliminate violations of license conditions.
According to the latest financial statements submitted by Gestalt Group Insurance Company, as of June 30, 2023, the company’s insurance premiums amounted to UAH 5,971 million, assets amounted to UAH 81,642 million, and insurance reserves amounted to UAH 1,952 million. The company’s market share in terms of insurance premiums amounted to 0.03%.
According to the latest reports submitted by INTO Insurance Company, the volume of insurance premiums amounted to UAH 28.767 million, the value of assets – UAH 139.178 million, insurance reserves – UAH 18.028 million. The company’s market share in terms of insurance premiums amounted to -0.2%.
The NBU emphasizes that the decisions come into force on September 8. In the event of license revocation, a financial services representative must fulfill its obligations under contracts with clients for the type of financial services specified in the decision, concluded before the date of entry into force of the decision to revoke the license.
The National Bank of Ukraine (NBU) has revoked the licenses of ALC IC Amji-Insurance (Kiev) and PJSC IC VONA to provide financial services due to the non-compliance of their ownership structure with the legislation. (Lviv), reported on the website of the regulator.
The decision to cancel the licenses was taken by the board of the NBU on March 2, 2023 in accordance with Article 381 of the law “On Financial Services and State Regulation of Financial Services Markets”.
The NBU informs that according to the last submitted financial statements for the year 2022 the amount of insurance premiums of the company as of December 31, 2022 was UAH 1.927 million, the value of assets – UAH 39.322 thousand, insurance reserves – UAH 270 thousand. The market share of the company on insurance premiums amounted to 0,006%.
According to the last submitted statements of IC “VONA” for 2022, the value of its assets amounted to UAH 31,098 mln. There were no insurance premiums, insurance reserves. The market share of the company on insurance premiums – 0,0%.
After the revocation of license the financial institution is deprived of the right to operate by the types of licenses withdrawn, but does not relieve the financial institution from its obligations under contracts for the provision of financial services.
IC “Amji Insurance” (until March 2019 – OTO “OTL-Insurance”) specializes in risk insurance. According to the data of the company, published on its website, as of the beginning of 2022 its shareholders were 16 individuals.
IC “VONA” (former IC Veltva) has been incorporated in October, 1995. Since 1997 it is a member of the Motor (transport) Insurance Bureau of Ukraine, the Kharkov Union of Insurers, “Insurance business” association and the Kharkov Chamber of Commerce and Industry.
In October 2013 IC “VELTA” has rebranded to PrJSC “Insurance company “WONA” and changed its location to Lvov.
According to the website of the insurer, its shareholder on January 1, 2022 is LLC “UKR SEL” (Lviv), which owns 99.9% of the insurer. Through it, Tatiana Barbaniuk owns 13,9986% of the insurer, Yaroslav Ishchak – 41,276%, Roman Kapustin – 44,816%.
On September 29, 2022, the National Bank of Ukraine applied to PJSC Ukrainian Industrial Insurance Company and ALC Nadiya Insurance Company (both Kyiv) measures in the form of license cancellation, according to the website of the regulator.
The reason for this decision was the repeated violation of license conditions and once again failure to provide information at the request of the regulator. Namely, observance of mandatory monetary standards, overdue obligations under concluded insurance contracts, cases of violation of the deadlines for the settlement of declared events that have signs of insurance (the composition of the reserve for claimed but not paid losses).
“Consequently, for a long time after the start of the Russian aggression, insurers did not take measures to establish operational activities and accounting. This makes it impossible to carry out full-fledged insurance activities,” the report says.
Decisions to cancel licenses come into force on September 30, 2022.
As reported on August 12, 2022, a measure of influence was applied to these insurers in the form of a temporary suspension of licenses.
Insurers, to which the National Bank has applied enforcement measures, operate in the non-life segment.
PJSC “Ukrainian Industrial Insurance Company” does not provide reports to the National Bank, starting from the reporting for 2021.
ALC IC “Nadiya” does not provide reporting, starting with the reporting for the 1st quarter of 2022.
Based on the results of 2021, IC Nadiya received UAH 3 million in insurance premiums and made UAH 3.1 million in insurance payments. At the same time, the company did not enter into insurance contracts with individuals. The company’s market share based on the results of 2021 is 0.006%. The insurer informed the National Bank of the temporary cessation of insurance activities after the start of the military aggression of the Russian Federation.
