Italian insurer Eurovita placed under special administration

The Italian government has placed the life insurance company Eurovita under temporary administration. The public guardianship, valid for a renewable period of one year, is aimed at preventing the company from going bankrupt due to serious financial difficulties.

The authorities have also extended the suspension of insurance and capitalization contract redemptions with Eurovita until 30 June 2023.

The insurer is facing major solvency problems due to rising interest rates.

The British investment fund Cinven, a shareholder of the Italian group, had injected 100 million EUR (109.2 million USD) in the company's capital in February 2022. However, Eurovita's capital needs are estimated at 400 million EUR (437 million USD).