Two insurance companies seized

The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has seized Mellce Sigorta and Gri Sigorta.

In its statement, the SEDDK cited the reason as: "their failure to improve their situation despite a reasonable period of time granted, following the implementation of gradual measures for some time due to their transactions contrary to regulations and poor management."

The statement made by the SEDDK is as follows:

"As is known, the insurance and private pension sector is under the constant supervision and audit of our Agency. Our sector, which possesses international prestige and a strong capital structure, has reached historical peaks in capital adequacy levels and return on equity according to recent financials.

However, it has become necessary to implement measures regarding GRI SİGORTA ANONİM ŞİRKETİ and SINIRLI SORUMLU MELLCE KARŞILIKLI SİGORTA KOOPERATİFİ, on which our Agency has been applying gradual measures for some time due to their transactions contrary to regulations and poor management, and which have failed to improve their situation despite the reasonable time granted, in order to protect the rights and interests of our policyholders and to ensure our sector is not negatively affected.

In this context, in accordance with Article 20 of the Insurance Law No. 5684, it has been decided to terminate the duties of all current board members of the aforementioned companies, to appoint new board members, and to leave the management of their insurance portfolios to the Insurance Guarantee Fund.

In order to ensure the continuity of insurance coverage for those affected by the process and to protect their rights, necessary initiatives have been launched to create compensatory plans under the leadership of the Insurance Association of Turkey.

As mentioned above, our measures are limited to the aforementioned companies, which are of a scale that will not affect our sector, and are aimed at ending persistent poor management and transactions contrary to regulations."

News Source: 12punto