2011-11-10
PRESS RELEASE
Finansinspektionen is withdrawing the authorisation of non-life insurance company E.N. Sak Försäkring i Europa AB. The company has demonstrated material deficiencies in its operations and experienced repeated problems with securing its financial position for several years. The company’s problems are not the result of the turbulence on the financial market.
E.N. Sak Försäkring is a small non-life insurance company that primarily sells insurance for loss of income related to unemployment. The company has been experiencing solvency and liquidity problems for several years. The solvency ratio has been too low on several occasions during the past three years and the company has taken prohibited loans to avoid acute liquidity problems. The company has also not maintained a register of assets covering technical provisions over a long period of time, which has meant that its policyholders’ assets were not protected at a time when the company’s financial position was weak.
The company’s recurring deficiencies have materially risked the rights of its policyholders and FI is therefore withdrawing the company’s authorisation with immediate effect. Finansinspektionen has made the decision to freeze the company’s assets and the company, until the Swedish Companies Registration Office decides on the liquidation, will be run under management. Finansinspektionen will manage the operations with the aid of the law firm, Vinge.
Customers should wait for a decision about the future of the insurance policies. The company’s financial situation will now be investigated and if there are sufficient assets, payments will continue until further notice. It will also be investigated if it is possible for another insurance company to take over the insurance contracts.
FI has followed the company closely for a long period of time and the decision has no direct link to the uncertainty that currently is present on the financial markets.
E.N. Sak Försäkring is a small insurance company with annual premium income of approximately SEK 40 million and around 30 employees. The company has 26,000 customers in Sweden and Denmark.
