In respect of the announced news that the NBRNM has revoked the work permit of EUROSTANDARD BANKA AD Skopje, the Insurance Supervision Agency hereby informs the public that the insurance market is stable and the development of the above-mentioned events shall not affect the liquidity and solvency of the insurance companies adversely.
The facts are as follows:
The total assets of the insurance sector on June 30, 2020 amount to 26.4 billion MKD denars. The insurance sector consists of 16 insurance companies, of which 11 perform non-life insurance, and five perform life insurance. Four insurance companies had monetary assets and deposits in Eurostandard Bank on June 30, 2020, with total value of 31 million MKD, which represents 0.1% of the total value of insurance sector’s assets. At the same time, out of the total investments of the insurance sector in banking instruments, the investment in Eurostandard Bank is 0.3%. Most of it is placement of two insurance companies with a solid solvent position.
During 2019, EUROLINK AD Skopje received a new owner, i.e. the Austrian insurance group GRAWE from Graz bought all shares issued by this insurance company by the previous owner, who is the owner of the bank. Hence, this insurance company is in no ownership relationship with the Bank, and there is no risk of transferring the liabilities from the bank to the insurance company.
The conclusion drawn from the stated facts confirms the statement that there is no risk that the bankruptcy proceedings of Eurostandard Bank will affect the fulfillment of the insurance companies’ obligations arising from the insurance contracts nor will they substantially affect the profitability and solvency of the insurance companies.