Order on the Transfer of Insurance Portfolios of Group 1 Insurance Undertakings

Order on the Transfer of Insurance Portfolios of Group 1 Insurance Undertakings1)

Pursuant to Section 66 and Section 316, Paragraph 1, of Act No. 718 of 13 June 2023 on Insurance Undertakings, it is hereby prescribed:

Scope and Definitions

Section 1. This Order applies to the full or partial transfer of an insurance portfolio by a Group 1 insurance undertaking, where the insurance contracts were concluded through a branch or in the form of cross-border services, to an insurance undertaking established in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector.

Section 2. The country where the risk or obligation is situated is the country where the policyholder has their habitual residence or, if the policyholder is a legal person, the country where the legal person's business, to which the insurance contract relates, is located, subject to Paragraph 2.

Paragraph 2. The country where the risk or obligation is situated is understood to be the following in the following cases:

1. The country where the insured property is located for insurance covering immovable property or, to the extent that the contents are covered by the same insurance policy, immovable property and contents.
2. The country where the registration has been carried out for insurance relating to a means of transport that is to be registered. When a motor vehicle is sent from one Member State to another, the risk, however, lies in the receiving Member State for 30 days from the buyer's acceptance of delivery, regardless of whether the vehicle is formally registered in that country.
3. The country where the policyholder concluded the contract for insurance relating to risks associated with travel or holidays of a maximum duration of 4 months.

Conditions for Transfer

Section 3. A Group 1 insurance undertaking must apply to the Danish Financial Supervisory Authority (Finanstilsynet) for permission to transfer the whole or a specific part of its insurance portfolio, where the insurance contracts were concluded through a branch or in the form of cross-border services, to an insurance undertaking established in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector.

Paragraph 2. Permission is granted when the following conditions are met:

1. The supervisory authority in the country where the risk or obligation is situated gives consent to the transfer.
2. The supervisory authority in the country where the acquiring undertaking is established confirms that the undertaking, after the transfer has taken place, has a capital base that covers the solvency capital requirement calculated by the undertaking.

Paragraph 3. If a branch wishes to transfer the whole or part of its insurance portfolio underwritten under the right of establishment, the supervisory authority in the country where the branch is established must also be consulted.

Section 4. A Group 1 insurance undertaking must apply to the Danish Financial Supervisory Authority (Finanstilsynet) for permission to transfer the whole or a specific part of its insurance portfolio, where the insurance contracts were concluded through a branch or in the form of cross-border services, to a Group 1 insurance undertaking established in Denmark or to a branch in Denmark that is part of an insurance undertaking established in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector.

Paragraph 2. Permission is granted when the supervisory authority in the country where the risk or obligations are situated gives consent to the transfer.

Paragraph 3. In the case of a transfer to a branch in Denmark, permission is granted when consent has been given pursuant to Paragraph 2 and when the supervisory authority in the country where the acquiring undertaking is established demonstrates that the undertaking, after the transfer has taken place, has a capital base that covers the solvency capital requirement calculated by the undertaking.

Paragraph 4. If a branch wishes to transfer the whole or part of its insurance portfolio underwritten under the right of establishment, the supervisory authority in the country where the branch is established must also be consulted.

Penal Provisions

Section 5. Violation of Section 3, Paragraph 1, and Section 4, Paragraph 1, is punishable by a fine.

Paragraph 2. Companies and other legal persons may be subject to criminal liability according to the rules in Chapter 5 of the Danish Criminal Code.

Entry into Force

Section 6. This Order enters into force on 1 January 2025.

Paragraph 2. Order No. 818 of 3 July 2015 on the transfer of insurance portfolios of Group 1 insurance undertakings is repealed.

Danish Financial Supervisory Authority, 5 December 2024 Louise Mogensen / Line Bergmann

5 December 2024. 2 No. 1477.

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1. The Order implements certain parts of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Official Journal of the European Union 2009, No. L 335, page 1, as amended by Directive 2014/51/EU of the European Parliament and of the Council of 16 April 2014 amending Directives 2003/71/EC and 2009/138/EC and Regulations (EC) No 1060/2009, (EU) No 1094/2010 and (EU) No 1095/2010 as regards the powers of the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (Omnibus II), Official Journal of the European Union 2014, No. L 153, page 1, and certain parts of Council Directive 2005/14/EC of 11 May 2005, Official Journal of the European Union 2005, No. L 149, page 14 (5th Motor Insurance Directive).

Law Gazette A 2024 Published on 11 December 2024 5 December 2024. No. 1477. Ministry of Business Affairs, Danish Financial Supervisory Authority, file no. 24-019096 CQ003058