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After blocking the assets of VDV Leben International late last year the Private Insurance Supervisory Committee at the Bank of Greece took a final decision to revoke the license of the company. The verification of the company found that the management of VDV had presented false levels of assets to cover reserves.

The assets of the insurance company which operated both in Greece and Germany were blocked in mid September and the license of its activity was frozen. 6500 of about 10 thousand insurance contracts were signed in Germany and the other 3500 were signed in Greece. Under the current law, insurance contracts of the closed company’s portfolio will be transferred to the Guarantee Fund of private insurers. Then, policyholders will be transferred to other host companies without losing their savings.

GRReporter turned to the specialists of the Insurance Market magazine to clarify the issue of VDV Leben International. Amalia Ruhollah, editor at the magazine, said that the Private Insurance Supervisory Committee have asked the management of the company to cover the established deficit of 45 million euros to 30 September 2010 and to explain the current situation.

"Despite its small size the company could still seriously hurt the confidence in the Greek insurance market which is still trying to recover from the withdrawal of Aspis AEGA and Commercial Value," explained Amalia Ruhollah. Therefore it is of utmost importance the Supervisory Committee to exert pressure and the management to compensate and explain how the deficits in the company assets were formed. She explained that according to the Private Insurance Supervisory Committee, VDV Leben International had only 0.18% market share in Greece for the first half of 2010. However, the rate is of no importance if the company did not present reliable information on the actual condition in good faith.
 
After the deadline when the deficit had not been covered, nor justified the Bank of Greece appointed supervisor in order not the burden the Guarantee Fund additionally. Currently it is dealing with the management of about 200,000 life insurance contracts hanging after the bankruptcy of the companies Aspis and Commercial Value. The Fund has been established after the fiasco with two major insurance companies but the method for compensating the affected is not clear yet. However, even during the freezing of VDV Leben assets the German supervisors in private insurance have clarified for their Greek counterparts that all German customers of the company can not lose their money and must be compensated.