Danish Insurer Gefion Bankrupt After €30M Legal Defeat
Gefion Insurance A/S was declared bunkrupt on Monday, 7th of June, after the embattled Danish Company failed to fend off €30 million ($36.5 million) legal claim from a German car rental company.
Gefion, which has been in administrration for almost a year in a move to pay off creditors, was grunted a request for bunkruptcy at Denmark’s Maritime and Commercial High Court.
Administrators said the Company could no longer afford to pay creditors after losing a Court of Appeal ruling in Germany. In Britain the Financial Services Compensation Scheme said it would step in to protect policyholders in the U.K.
Policyholders must report their claims to the claims handlers mentioned in their policy. Further information can be found on the homepage of the bankruptcy estate, www.gefioninsurance.com.
Furthermore the bankruptcy means that policyholders can cancel their policy, if they wish to do so. The policy will be cancelled 3 months after the declaration of the bankruptcy in the Danish journal, Statstidende. The Danish Financial Supervisory Authority encourages the policyholders to cancel their policy with Gefion and buy a new policy with another insurance company if possible. This is due to the fact that Gefion has been declared bankrupt and unless the policyholder is covered by a compensation body within its territory, it might take several years to be compensated and then probably only partially compensated in the form of a dividend from the bankruptcy estate. The Danish Guarantee Fund will only cover risks (within the scope of coverage) in Denmark for insurance policies written in Denmark. The policyholders must be aware that in the situation that the insurance contract is not covered by a compensation body within its territory it can last several years before the policyholders can get the premium refund repaid, and only in the form of dividend.
The curators of the bankruptcy estate, attorney-at-law Boris Frederiksen and attorney-at-law Søren Aamann Jensen, will contact all policyholders in Gefion to inform and guide them on how to act.
The curators of the bankruptcy estate can be contacted at gefion@poulschmith.dk.
The Danish Financial Supervisory Authority has opened a hotline (+45) 41 93 35 00 for enquiries about the bankruptcy in Gefion. The hotline will be manned on weekdays between 10am and 14pm CET.
In the attached Q&A, the Danish Financial Supervisory Authority has answered the most commonly asked questions that arise in a bankruptcy situation.
Q & A regarding the bankruptcy of Gefion
Question
Answer
1. Who is Gefion and what has happened?
Gefion wasa Danish insurance company, which operated in Denmark and was authorized to write business within EU through agents and brokers. On 24 June 2020, the Danish Financial Supervisory Authority withdrew the company’s license as an insurance company. On 13 July 2020, Gefion entered into liquidation (solvent). Attorney Troels Askerud and attorney Søren Aamann Jensen were appointed as the liquidators by the General Assembly. On 7 June 2021, the Maritime and Commercial High Court declared Gefion bankrupt.
2. I have a claim, what should I do?
If your claim has already been reported to Gefion, you do not have to do anything further. For further information please refer to the homepage of the bankruptcy estate, www.gefioninsurance.com.
3. I have reported a claim to Gefion before the company went bankrupt. What should I do now?
You do not have to do anymore. Your claim will be handled by the bankruptcy estate, cf. question 2 above
4. Is my policy still valid?
Yes, your policy is still valid. The bankruptcy gives you the right to cancel the policy immediately, and the policy is automatically cancelled 3 months after the bankruptcy has been published in Statstidende. You are encouraged to cancel your policy and buy another one in another insurance company if possible.
5. I have payed premium for a full year, will I get some of my premium payment back?
You can file a claim for a premium refund to the bankruptcy estate.
6. How do I know if I am insured by Gefion?
The name of your insurance company is found in the terms of your insurance policy.
7. I am a policyholder in Gefion, what should I do now?
The curator of the bankruptcy estate will contact you to guide and inform you on how to act if you want to report or vindicate a claim. If you have any questions to the curator, you can find information at www.gefioninsurance.com.
8. What can I do if I have further questions?
The curators of the bankruptcy estate can be contacted at gefion@poulschmith.dk.
The Danish Financial Supervisory Authority has opened a hotline (+45) 41 93 35 00 for enquiries about the bankruptcy in Gefion. The hotline will be manned on weekdays between 10am and 14pm CET.
Insurer for Suez grounded ship appeals detention by Egypt
UK Club, an insurer of the Ever Given cargo ship which ran aground in the Suez Canal in March, said on Friday it had filed an appeal in an Egyptian court over the detention of the vessel by authorities.
The Ever Given has been anchored in a lake between two sections of the canal since being dislodged on March 29 and is caught in a legal dispute linked to a $916 compensation claim made by the SCA against the ship’s Japanese owner.
UK Club, the Ever Given’s protection & indemnity (P&I) insurer, said the move was necessary as it had not been possible to resolve the issue without continued involvement of the Egyptian courts.
“The appeal against the arrest was made on several grounds, including the validity of the arrest obtained in respect of the cargo and the lack of supporting evidence for the (Suez Canal Authority’s) very significant claim,” it said.
The Suez Canal Authority said on Sunday that investigations into the Ever Given’s grounding were continuing alongside efforts to reach an agreement with the ship’s insurer and owner.
UK Club said last week the canal’s claim included $300 million for a “salvage bonus” and $300 million for “loss of reputation”.
A hearing on the appeal would be held on May 4, it said.
Last week, the Suez Canal Authority allowed two crew members from the vessel to return home to India, a move UK Club said was encouraging.
Source: Reuters (Reporting by Jonathan Saul, writing by Nafisa Eltahir; Editing by Jason Neely and Edmund Blair)
Insurer BNP Paribas Cardif sets target of 3.5 billion euros in green investments by end 2020
The company is strengthening the socially responsible investment strategy initiated in 2008, taking new measures to support the energy transition and reduce ecological footprints.
A target of 3.5 billion euros in green investments [1] by end 2020
As the energy transition is part of its CSR strategy priorities, BNP Paribas Cardif announced in 2017 a commitment to reaching 2.4 billion euros in green investments by the end of 2020. In just two years the insurer has more than doubled its green investments [2] within the framework of its general funds in its domestic markets (France, Italy, Luxembourg), supporting financing of the energy transition and reduction of ecological footprints.
BNP Paribas Cardif has decided to raise its objective by 1.1 billion euros to reach 3.5 billion euros in green investments by the end of 2020. The insurer will continue to contribute to the development of green bonds which finance projects with high environmental value, and to continue its positive environmental impact investments.
Reduced exposure to coal
BNP Paribas Cardif continues to reduce the exposure to coal in the investment portfolios managed directly for the general funds in its domestic markets [3]. This initiative is aligned with the sector policy of the BNP Paribas group, which establishes guidelines in particular governing activities involving coal-fired power generation.
Within the scope of its directly managed activities, BNP Paribas Cardif now no longer finances any power generation businesses whose coal-fired power accounts for over 30% of their total installed power generation capacity.
Application of this sector policy covers investment flows and securities already held directly in the general funds. This is why in 2018 the insurer divested 200 million euros in investments in companies in the coal-fired power generation sector [4].
In addition to these initiatives, BNP Paribas Cardif is pursuing its shareholder engagement to encourage change in practices by issuers. As a major source of financing for the economy and direct holder of shares, BNP Paribas Cardif is strengthening its shareholder engagement policy by integrating new Environmental, Social and Governance criteria (ESG), in particular concerning diversity and human rights. The insurer applies this strategy to all directly held shares within the general funds in its domestic markets.
Responsible management of real estate investments
BNP Paribas Cardif continues to apply more demanding environmental criteria to its real estate holdings in France. The company has committed to a 30% reduction in energy consumption for its 55 office buildings (representing 658,956 square metres) by 2020. BNP Paribas Cardif pursues innovative energy renovation and investment initiatives – such as financing for the Java building in Paris, which operates without air-conditioning, planted surfaces on buildings, wood construction, etc. – in order to reduce greenhouse gas emissions and improve biodiversity.
“We believe that insurance companies have an important role to play in supporting the energy transition. As an institutional investor we are pursuing our efforts to fight climate change while combining financial performance and social responsibility,” says Olivier Héreil, BNP Paribas Cardif Deputy Chief Executive Officer, Asset Management.