The NBS Administration for Supervision of Financial Institutions has permitted the joint-stock life insurance company MetLife to transfer certain part of its life insurance portfolio to the joint-stock insurance company Wiener Städtische osiguranje.
The approval was granted on 17 January 2014 and the portfolio transfer will be effected as at 31 December 2013, according to NBS.
The portfolio portion comprises rights and obligations arising from long-term endowment (mixed life insurance) and pure endowment insurance contracts.
Furthermore, it also includes supplemental insurance contracts, as well as reserves and liabilities relating to valid and terminated endowment and pure endowment insurance policies.
Within 15 days of receiving the above approval, MetLife is required to inform in writing or through the media all policyholders affected by the transfer of the business name and seat of the transferee.
Additionally, MetLife is required to inform in writing the date by which they must decide whether they will accept the portfolio transfer or cancel their insurance contracts, and of their rights in the event of contract cancellation.
After receiving the approval, Wiener Städtische osiguranje has 30 days to conclude new contracts with the hitherto insureds of Metlife who accepted the portfolio transfer.
The permission to transfer the portfolio does not convey any change in the operating licenses issued by the NBS to Metlife and Wiener Städtische osiguranje.