On operations of provisional administration to manage DALACFES Insurance Company, limited liability company

Whereas DALACFES Insurance Company, limited liability company (hereinafter, the Company) violated the requirements for maintaining financial sustainability and solvency, the Bank of Russia, pursuant to its Order No. OD-978, dated 17.04.2018, effective 18.04.2018, appointed a provisional administration to manage the Company (hereinafter, the provisional administration) for a term of six months.

The Company’s failure to timely remedy breaches of insurance regulation entailed the revocation of its insurance licences, by virtue of Bank of Russia Order ОD-1120, dated 27.04.2018.

The provisional administration established facts suggesting that the Company’s former owner and officials had conducted transactions aimed at siphoning off corporate assets through writing off reporting persons’ receivables, while the Company was insolvent and had significant overdue liabilities to creditors regarding mandatory payments obligations.

The provisional administration also revealed possible theft of OSAGO policy forms assigned to the Company, as well as of primary documents confirming the conclusion of OSAGO contracts with the use of the said forms.

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

The information on the financial transactions bearing the evidence of criminal offence, conducted by the Company’s executives, was sent to law enforcement authorities for consideration and procedural decision making.

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