Public statement on Acasta European Insurance Company Limited
A Regulatory Settlement Agreement has been entered into between the Gibraltar Financial Services Commission (GFSC) and Acasta European Insurance Company Limited (Acasta), a Gibraltar insurance company. This Agreement relates to the firm from 2019 to 2020 when standards fell below what was expected of it for regulatory purposes.
Acasta accepts that from 2019 to 2020, its forecasting and internal control systems fell below the required regulatory standards under Regulation 47 (1) of the Financial Services (Insurance Companies) Regulations 2020. Acasta did not comply with the agreed imposition of a requirement under Section 70 (4) of the Financial Services Act 2019 to limit the amount of its written premium.
In addition, for a period of 24 days in 2020, Acasta fell below its solvency capital requirement when calculated on a basis known as the modified After The Event insurance (ATE) basis. The modified ATE basis requires Acasta to have funds in excess of the amount calculated in accordance with the standard formula.
Acasta has agreed the contents of this public statement with the GFSC as a regulatory outcome by way of a Regulated Settlement Agreement.
In 2019 and 2020, the firm exceeded the amount of written insurance premium set out within both its business plan forecasting and the maximum limit it had agreed with the GFSC.
In 2020, for a period of 24 days, the firm also fell below what was expected of it for regulatory purposes in terms of its solvency capital requirement level, when calculated on a basis known as the modified ATE basis. The firm agreed to obtain a Skilled Persons report to review and consider its compliance with relevant financial services legislation over this period. Areas for improvement were identified in the firm’s internal control systems, forecasting and monitoring of premium volumes. Acasta has engaged and co-operated with the GFSC and has remediated fully.
The GFSC acknowledge that the UK Covid-19 related lockdown in March 2020 had a bearing on Acasta’s premium forecasting and is considered to be a mitigating factor.
Acasta is authorised by the GFSC as an insurance company with permitted regulated activities relating to effecting and carrying out contracts of insurance and they offer a range of both general and After The Event insurance products. (GFSC authorisation number FSC0137FSA). Acasta continues to hold its authorisations from the GFSC and no further action is contemplated by the GFSC in relation to this matter.