This move follows Italy’s Institute for the Supervision of Insurance’s (IVASS) directive asking Eurovita to raise its capital reserves by nearly €250m.
The sale is imperative to fulfilling the insurance watchdog’s specifications.
According to the sources, the Italian life insurance firm is required to improve its solvency ratio, a major indicator of financial strength.
In March last year, a report said that Cinven is mulling the sale of Eurovita. A potential deal was expected to generate $710m.
However, Cinven reportedly paused the sale process as bids did not meet the valuation of €600-700m set by the UK firm.
Earlier this year, IVASS carried out a follow-up to assess the steps taken up by the insurer to resolve its lapses.
The news agency, quoting Eurovita’s 2021 financial report, said the firm’s solvency ratio at the end of 2021 end dropped below a “soft limit” tolerance mark fixed at 150%.
Eurovita also reported decrease in premiums during the Covid-19 pandemic.
In the report, Eurovita also mentioned about multiple audits conducted by IVASS on investments, financial risks, cybersecurity checks as well as money laundering risks. The Eurovita group was formed in 2017 with the merger of ERGO Previdenza, Old Mutual Wealth Italy and Eurovita Assicurazioni.