THE NATIONAL Bank of Slovakia has awarded a licence to provide reinsurance in the non-life insurance sector to Generali Slovensko. The active-reinsurance licence opens new opportunities to the insurer, which plans to cover the entire insurance market in Slovakia. Within its first three years, the company expects growth in the corporate non-life insurance sector in particular, the SITA newswire wrote on July 22.
Normal insurance transfers risk from the client to the insurance company. Depending on the extent and weight of that risk, the insurer then transfers all or part of it to another subject, normally a reinsurer. In active reinsurance, the insurer covers the risks of another insurer or acts as its insurer. The diversification of risk allows for better management of indemnity costs and thus a morestable financial performance.
Generali Slovensko has been operating in the Slovak market since October 1, 2008, when it was established by the merger of Česká Poisťovňa-Slovensko and Generali Poisťovňa. The two companies had been members of the Generali PPF Holding group since January 2008, following Generali Group and PPF’s agreement of the final wording of a joint venture contract for Generali PPF Holding in mid-July 2007. Česká Poisťovňa- Slovensko had operated on the Slovak market from August 1993, and Generali Poisťovňa was founded in 1996.
25. Oct 2010 at 0:00 | Compiled by Spectator staff