Recital 34

(34) The use of resolution tools and powers might disrupt the rights of shareholders and creditors of insurance and reinsurance undertakings. In particular, the power of the resolution authorities to transfer the shares or all or part of the assets of an insurance or reinsurance undertaking to a private purchaser without the consent of shareholders affects the property rights of shareholders. In addition, the power to decide which liabilities to transfer out of a failing undertaking to ensure the continuity of services and to avoid adverse effects on policy holders, beneficiaries and injured parties, the real economy or financial stability as a whole might affect the equal treatment of creditors. Any resolution tool should therefore be applied only to those insurance or reinsurance undertakings that are failing or likely to fail, and only where it is necessary and proportionate to pursue the resolution objectives in the general interest giving due consideration to the objective of protection of the collective interest of policy holders, beneficiaries and claimants. The individual interest of a particular person or group should not prevail over the overall balance of the collective interest of policy holders, beneficiaries and claimants of the undertaking concerned.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.