The Danish Financial Supervisory Authority has informed about the financial standing of Gefion Insurance A/S. The watchdog ordered not to expand scope of insurance business.
As Danish Financial Supervisory Authority informed, Gefion Insurance A/S does not comply with the solvency capital requirement. The company has serious liquidity problems. Moreover the Danish Financial Supervisory Authority considered that it is inappropriate if Gefion tries to solve its liquidity problems through growth in gross premiums.
According to the institution the interests of the policyholders and beneficiaries are at risk. As a consequence, the financial watchdog forbids the insurer from expanding its scope of business. The company cannot launch new insurance products on the market and enter foreign country markets.
Gefion Insurance A/S offers motor insurance in Poland. It is estimated that the company has less than 1% of the market share in Poland and this indicator has decreased over a few years.
The Polish financial watchdog does not preclude the probability of insolvency in the future.
