SERBIA: NBS revokes the license of TAKOVO Osiguranje

7 August 2014 — Vlad BOLDIJAR
NBS-logo-100The Executive Board of National Bank of Serbia (NBS) has taken the decision to revoke the TAKOVO insurance company's license and prohibit the disposal of its assets until the opening of liquidation proceedings. At the same time, NBS filed a proposal for a bankruptcy proceeding to the Commercial Court of Kragujevac (where TAKOVO Osiguranje is headquartered) concerning institution of liquidation proceedings and informed the Deposit Insurance Agency for the purpose of appointing the liquidation receiver.

"As of today TAKOVO Osiguranje is not allowed to conclude new insurance contracts," the bank said in a statement. "Existing contracts will be valid until the expiry date."

NBS said that revoking the license of TAKOVO was preceded by activities over an extended period of time seeking to ensure that the company harmonizes its operation with provisions of the Insurance Law relating to adequate coverage of technical reserves. "It was ascertained that the company's financial position did not improve in the prior period, nor did the company take measures ordered by the NBS in regular supervision of its work. As all criteria for revoking the license have been met under the Insurance Law, the above decision was adopted to protect the interests of insured, insurance beneficiaries and third damaged parties and to preserve the stability of the insurance market".

At the end of 2013, on Serbian market were active 24 insurers. According NBS statistics, the local market totaled ~RSD 64 billion (~EUR 560 million). Analyzing the insurance market ranking due the GWP volume, TAKOVO was the seventh insurer in the market (3.10% market share).

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