The Finance Ministry imposed forced administration on the Union pojistovna (UP) insurer in order to protect clients' interests. Union pojistovna, founded in 1995, provides services to corporate clients, smaller businesses, and individuals. Zdenek Petricek was appointed as the forced administrator. The Finance Ministry is to monitor the situation in Union pojistovna and will inform the public on developments in the insurer's situation.
Union pojistovna showed a loss of CZK233m in 2002. UP is currently part of the troubled Union Group. Union pojistovna lent Union Group's collapsed Union Banka (UB) millions of crowns before the bank went under.
Reportedly, the Czech venture capital firm Conti Capital (CC) is set to become the main shareholder in Union pojistovna. CC is a venture capital enterprise active in evaluating investment plans and establishing and managing private sector companies. The firm was established in 1998.
Source: Interfax
