Montepio injects €7.5M into Lusitânia Vida

 In Insurance, News

The insurance arm of mutualist financial services group Montepio Geral has received a €7.5 million cash injection.

Lusitânia Vida received the lifeline following losses in the group’s investments portfolio this year as a result of turbulence on the stock market, including losing money on securities in Russian companies.
The cash input will be used to strengthen the insurer’s solvency ratio, thereby meeting regulator regulations.
The operation was undertaken this month via a debenture loan that was fully subscribed by Montepio. The cash injection will “increase the insurer’s financial buffer to offset the current market conditions which have reflected considerable volatility and uncertainty” said an official source within the group led by Virgílio Lima.