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"Such a decision was taken considering that, by decision of the Board of Industrijos Garantas, the goal of this company is a smooth finalization of their insurance activities, performing a voluntary liquidation procedure of the insurance company. This is a civilized, respectable way to leave the insurance business," comments Mindaugas Salcius, Deputy Director of the Prudential Supervision Department of the Supervision Service.

The Board of Industrijos Garantas in 2011 had made the decision to no longer enter into new insurance agreements and meet only the liabilities from earlier agreements: administer insured events and meet other obligations according to the effective insurance agreements. Most of the old insurance agreements are no longer valid: on 1 February 2013 only 33 security insurance agreements, made by Industrijos Garantas, were still effective.

In taking the decision to suspend the insurance activities license, the Board of the Bank of Lithuania took into account that Industrijos Garantas no longer performs active insurance activities (doesn't enter into new insurance agreements and doesn't receive the main activity funds of the insurance company), it has become difficult for the company to maintain the capital adequacy requirements (minimal guarantee fund), which are applied to actively operating insurance companies.

Salcius notes that the suspension of the license does not create obstacles for negotiations regarding the possible transfer of the rights and obligations of Industrijos Garantas. And if the insurance company's shareholders decide to continue insurance operations, if documents that prove compliance with established requirements are provided, it would be possible to discuss the issue of renewing the operating license.