ASA KINDLUSTUS AS

ANNOUNCEMENT

02.09.99

 

 

AB KINDLUSTUSE GRUPP SOLD ITS HOLDING IN ASA KINDLUSTUS 

AS

 

AB Kindlustuse Grupp sold on 01.09.1999 its majority 

shareholdings in insurance companies ASA Kindlustus 

and AB Elukindlustus to an American-based company Advantage 

Life Products, Inc.

 

The new majority shareholder has promised to guarantee 

the companies' liquidity and bring the insurance-technical 

reserves into line with the provisions of the Insurance 

Law. The representatives of Advantage Life Products will 

introduce the details of the restructuring plan in Estonia 

next week. 

 

In accordance with the restructuring plan, the company is 

to conclude a re-insurance contract with Aon Re, the 

re-insurance company belonging to one of the world's leading 

insurance groups. The contract will cover the current and future 

insurance policies issued by ASA Kindlustus and AB 

Elukindlustus. As a result of the above, the requested level 

of the companies' technical reserves will decline, i.e. 

brought into line with the Insurance Law. The respective 

memorandum with Aon Re was concluded at the end of August.

 

No changes will be currently made in the Management and 

Supervisory Boards of neither ASA Kindlustus nor AB 

Elukindlustus. Next week the new majority shareholder 

will also introduce its plans regarding the management 

of the companies.

 

 

Aleksandr Zaporozhtsev

ASA Kindlustus AS

Head of Financial Department

Tel. +372 24 25 298