Results of operations of provisional administration to manage Joint-stock Company Crimean Insurance Alliance

Following failure of Joint-stock Company Crimean Insurance Alliance (further referred to as the Company) to duly comply with Bank of Russia instructions and its breach of financial stability and solvency requirements, the Bank of Russia by force of its Orders Nos. ОD-2257 and ОD-2258, dated 30 August 2018, suspended the Company’s insurance licence and appointed a provisional administration.

The Company’s failure to timely remedy breaches of insurance regulations entailed the revocation of its insurance licence, by force of Bank of Russia Order ОD-2326, dated 6 September 2018.

The provisional administration, acting within its mandate, established facts suggesting that the Company’s operations included transactions aimed at siphoning off corporate assets by selling securities.

The provisional administration estimates the value of the Company’s property (assets) to be insufficient to meet its liabilities to creditors and mandatory payments obligations.

On 12 December 2018, the Arbitration Court of the Republic of Crimea recognised the bank as insolvent (bankrupt). The Deposit Insurance Agency State Corporation was appointed as receiver.

The Bank of Russia submitted the information on transactions bearing the evidence of criminal offence to the Prosecutor General’s Office of the Russian Federation, the Investigative Department of the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation for consideration and procedural decision making.

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