Panama’s Superintendency of Insurance and Reinsurance recently announced that it has intervened in the operations of reinsurer Casualty Re, in response to the company breaching rules on capital adequacy.
According to a statement released by the Superintendency of Insurance and Reinsurance of Panama, the Board of Directors of the organisation has ordered intervention into the reinsurance firm, Casualty Re.
The statement reveals that the organisation will intervene in the reinsurer’s operations for 180 days, in response to the firm breaching numbers 3 and 5 of Article 47 of Law 63 of September 19th, 1996, which, are the rules reinsurance operations and the firms dedicated to such activities are regulated.
According to the Superintendency of Insurance and Reinsurance of Panama, Article 47 is as follows; “The Commission, by reasoned decision, may intervene in the business of a company taking possession of its assets and assuming its administration in the terms determined by the Commission itself, in any of the following cases: … If it reduces the paid-in capital; 5. If the assets of the company are not sufficient to fully satisfy its liabilities.”
