Pervan: Central osiguranje is not going bankrupt, we are operating stably

(Patria) - Member of the management board of Central osiguranje, Željko Pervan, denied allegations that the insurance company might go bankrupt, after the sale of Central osiguranje to Croatia osiguranje from Croatia failed.

Pervan told the Patria news agency that Central osiguranje is operating stably and in accordance with all legal regulations, meaning it is one of the two insurance companies in FBiH whose capital and assets have over 100 percent coverage of their potential liabilities.

"All information about the company and its operations is available on the website of the Insurance Supervision Agency of FBiH," Pervan said.

At the end of January, it was announced on the Zagreb Stock Exchange that Croatia osiguranje had withdrawn from the purchase of Central osiguranje in Bosnia and Herzegovina, which sparked speculation that Central osiguranje might subsequently face financial problems, as well as disrupt the market of insurance companies in the Federation of BiH.

"In accordance with the Framework Agreement on the purchase and sale of 100 percent of shares in the company Central osiguranje d.d. dated 28. 6. 2018, Croatia osiguranje d.d., as the buyer under the Agreement, withdraws from the conclusion of the transaction," it was announced from Croatia osiguranje.

The legal representative of Central osiguranje, Zlatko Petrović, however, points out for Patria that the decision to terminate the contract with Croatia osiguranje was made by the management of Central osiguranje.

"The issue concerning the unrealized arrangement with Croatia osiguranje d.d. Zagreb, i.e., the possible purchase of shares of this company, is exclusively the result of our business decision, i.e., the owners of this company, which is completely normal in the operations of any commercial company, including this one," Petrović said.