Hitachi Capital Insurance Europe Ltd, the Irish-domiciled direct insurer, has been fined €25,000 and reprimanded by the Central Bank in relation to a breach of solvency margins under section 24(1) of the Insurance Act 1989. A subsidiary of British-based Hitachi Capital, its rundown began in July 2009.
Peter Oakes, director of enforcement with the Central Bank, noted that this was the regulator’s third settlement with a firm for breaches of solvency requirements in less than two years. “The fine imposed on this firm reflects the fact that the firm is no longer writing new business since July 2009 and is in run-off, and there was no loss to policyholders as a result.”
The Central Bank said the firm failed to comply with an undertaking that it would maintain available assets of at least 150 per cent of the total required solvency margin or its minimum guarantee fund of €3.5 million, whichever was the greater.
The firm was required to hold available assets to meet its solvency margin of at least €7.7 million. However, it failed to hold sufficient assets to meet this required solvency margin from March 31st, 2010, to June 29th, 2010, inclusive.
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