Press Room

 
Atlantic: Information on impacts of Eurogroup decisions
Atlantic Insurance Company Public Ltd, further to the announcement dated April 2, 2013 on the impacts of the Eurogroup decisions, would like to inform the investing public that:

As a result of the amendment of the Central Bank decree on April 21, 2013 with regard to the Sale of Certain Operations of Cyprus Popular Bank and the decree on the rescue of Bank of Cyprus by own means, the Management revised its estimate on the loss that is expected to emerge from the Group’s deposits in the two affected banks.

Specifically, pursuant to the amended decrees of the Central Bank dated April 21, 2013, the deposits of the insurance companies that were exempted from any charge base don the  decrees dated March 29, 2013, following a revision of the exemptions, it was decided that:

a) In the case of the deposits in Bank of Cyprus, 72.5% of the amount of deposits is exempted from the implementation of the provisions of paragraph 6.  The remaining 27.5% of the deposits is subject to the provisions of paragraph 6 of the decree on the conversion of deposits in shares to a percentage that has not yet been determined.

b) In the case of deposits in Cyprus Popular Bank, 72.5% of the deposits of the insurance companies is transferred to Bank of Cyprus, pursuant to paragraph 5 (2) (c) and is exempted from the conversion pursuant to paragraph 6.  The remaining 27.5% of the deposits remains in Cyprus Popular Bank and is expected to suffer losses that will depend on the liquidation procedure.

On March 26, 2013, the total bank deposits of the Group stood at:

Deposits of Atlantic Insurance

Cyprus Popular Bank: 116
Bank of Cyprus: €3.853

Deposits of the subsidiary Atlantic Securities Ltd

Cyprus Popular Bank: -
Bank of Cyprus: €211

The impacts on the Company’s deposits cannot be calculated exactly since the final percentages have not been determined yet.  If the final percentage in Bank of Cyprus is determined at 60%, the total impact on the deposits, excluding the value of shares that will emerge from the conversion, will reach €0.66 million, while if it is 50% the impact will be of €0.56 million.  In both cases, the calculations are based on the assumption that the final percentage of loss in Cyprus Popular Bank will be 100%.  From the conversion of part of its deposits in Bank of Cyprus, the Company will receive ordinary A class shares of Bank of Cyprus of nominal value €1 each.  The Management believes that according to information available, the value of shares that will emerge from the conversion of deposits in Bank of Cyprus cannot be determined with safety.

The deposits in Bank of Cyprus exceeding €100 thousand of the subsidiary Atlantic Securities Ltd will be affected to the extent of the final percentage of conversion of deposits, which has not yet been determined but will stand at 50%-60% of the nominal value of deposits.

In addition, pursuant to the decree on the rescue by own means of Bank of Cyprus issued by the Central Bank on March 29 2013, all rights of the shares in relation to the ordinary shares of the Bank have been suspended until the day of re-conversion of the Class D shares.  The Management believes that due to the above the value of the existing shares of Bank of Cyprus has been affected dramatically and, therefore, it has proceeded with an additional provision of €483 thousand for the full impairment in the value of shares held by the Company in Bank of Cyprus, which was recognized in the profit and loss account for the year ended December 31, 2012.
 
Regulated
Filing Date: 29/04/2013 21:01