PartnerRe firm is fined 1.5 million euros for violating EU

  • PartnerRe firm is fined 1.5 million euros for violating EU
    Independent.t. E.
    The Central Bank of Ireland has fined global insurance company PartnerRe Ireland insurance and sister company partner Reinsurance Europe 1.5 million euros for failure to comply with insurance regulations of the European Union.
    https://www.independent.ie/business/irish/partnerre-firms-fined-15m-for-eu-breach-37239064.html
    https://www.independent.ie/business/article37239377.ece/7b2d8/AUTOCROP/h342/2018-07-29_bus_42835314_I1.JPG

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The Central Bank of Ireland has fined global insurance company PartnerRe Ireland insurance and sister company partner Reinsurance Europe 1.5 million euros for failure to comply with insurance regulations of the European Union.

Fine, one of the largest ever issued by the Central Bank of Ireland (CBI) in respect of breaches of solvency II for European insurance companies. This is the first enforcement action here in connection with violations of solvency II, which entered into force in 2016.

Neither of the two fined companies to deal with consumers, instead, they provide insurance and reinsurance services for the European business of the parent company, Bermuda-partner re LTD. Solvency II is mainly concerned with the financial stability of that insurance company must have to cover potential losses without risk of insolvency.

PartnerRe Ireland was fined a total of six violations, while partner Reinsurance Europe was fined for three violations.

Of violations, deficiencies in corporate governance of the companies relating to their internal reporting and internal control requirements of solvency second.

The fines were imposed after regulators found deficiencies in management have led to violations related to the calculation of capital adequacy for 2016, and submission of false information to the Central Bank.

“Studies of prices for food products and found that companies submitted regulatory returns to the CBI, which overstated its position of solvency,” Seána Cunningham, of the CBI, said.

“As a result, both entities were required to re-submit their regulatory returns.

“It showed that they not only have provided the CBD with an inaccurate picture of their solvency position and – in the case of PartnerRe Ireland – this led to the violation of its solvency capital adequacy”, Ms. Cunningham added.

Yesterday as Ireland and PartnerRe partner Reinsurance Europe said they took “full responsibility” for mistakes made in the interpretation of the requirements of solvency II capital in 2016.

“While both companies were at all times solvent and policyholders were never in danger from the economic point of view, mistakes were made in 2016 quarterly reports on each company,” a company spokesman said.

“Disclosure of differences with promptly informed the CBI and acted quickly to rectify the situation. They also initiated an independent third party audit and implements recommendations to improve internal controls and reporting on the solvency of a second.”

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