Energo-Życie keeps licence
Energo-Życie, a part of the Nordea group, will be selling its first insurance policy today thus avoiding the risk of losing its licence for inactivity.
Energo-Życie received its licence on 29 September 2001 but its owner Energo-Asekuracja, changed its name to Energo-Ubezpieczenia and then did not develop the business. In the meantime Tryg Baltica, the owner of Nordea, bought Heros-Life making Energo-Życie surplus to requirements. If Energo-Życie had not started trading within one year of receiving its licence, the licence would have become invalid.
The first client would appear to be one of the employees of the company. This assurance contract does not mean to say that the business will be now developed, rather that this single sale will give Nordea time to find a buyer for the life assurance company. It is now talking to two potential buyers.
Nordea did not set the trend. Some time ago Metropolitan Life commenced trading more than one year after receiving its licence and had to take a similar step. Nordea says that the insurance watchdog PUNU has agreed to this move.
The share capital of Energo-Życie is PLN50m whilst its organisational fund has PLN10m. As the capital is so high, finding a buyer will not be easy as few foreign companies are prepared to risk this type of money investing in Poland.