The AFA adopts special control measures at Assegurances Generals, S.A.



On Friday, 16 August 2019, in the exercise of the functions and powers assigned to it by the Andorran Financial Authority (AFA) and pursuant to the decision of the General Manager of this Authority dated 14 August 2019, the Administrative Body of ASSEGURANCES GENERALS, S.A. was provisionally replaced and a special Administrator was appointed instead by adopting the special control measures provided for in Article 9.2.h) paragraph 6 of Law 12/2017 of 22 June on the organization and supervision of Insurance and Reinsurance in the Principality of Andorra (Law 12/2017).

Law 12/2017 defines special control measures as those aimed at controlling and reversing the situation of financial deterioration or the management of the Institution involving the actions of the Insurance and Reinsurance Supervisory Authority and necessary to safeguard the obligations arising from insurance contracts, and any other interests of the same entity that may affect solvency or viability. The Act also provides that the AFA must impose special control measures in the event that an Insurance Institution is in a financial impairment situation in such a way that it does not fulfil its obligations regarding the solvency capital requirement and minimum capital requirement, or are in financial difficulty.

As part of the exercise of its supervisory powers, the AFA has found that in ASSEGURANCES GENERALS, S.A. there are sufficient indications that the entity is in a situation of financial difficulty, which incurs the adoption of the special control measures mentioned above.

The aim of these measures is to safeguard the interests of the insured and interested third parties and to ensure the normal functioning of the activities of the Institution.

You can consult the Edict of 19-08-2019 concerning the special control measures on the Insurance Institution ASSEGURANCES GENERALS, S.A. adopted by the General Manager of the Andorran Financial Authority published in the BOPA at the following link:

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Source: Andorran Financial Authority