The president of the State Insurance Bank described the situation as the largest accident in history, although he assured that all policies will be paid.
He State Insurance Bank (BSE) obtained the highest rating from the evaluation agency Moody’swhile taking charge of the losses suffered by agriculture caused by a historic drought that caused the loss of more than $1.8 billiona strong blow for the bank that will cost more than 60 million dollars in insurance.
While the BSE received good news from the Moody’s rating agency, which placed it in the highest national rating of “AAA with a stable outlook”on the other hand, had one of the biggest losses since its history with the galloping drought that continues to hit Uruguay.
The president of the BSE, Jose Amorin Batlle, in an interview on Radio Carve reported that the bank will have to pay more than 60 million dollars for the drought and, especially, for the impact on a large part of the soybean crop. The BSE is the leader in agricultural insurance in Uruguay with 60% of the market.
According to the president of the bank, this was “a hit very hard” and described the drought as “the largest accident in historyfrom the financial institution.
In relation to payments, Amorín brought peace of mind by expressing that claims will begin to be paid as of this month and will end in July. The president clarified that the bank “will pay absolutely everything, as soon as possible”, but he stressed that it is necessary to wait for the harvests to finish to be able to account for the losses that the producers and the bank will suffer.
In relation to the recent losses due to the drought, Amorín guaranteed that next year the harvests will be guaranteed, but he specified that conditions will change because the demand for insurance increased after the catastrophe caused by the water deficit.
Source: Ambito
