Recital 40

(40) Interference with property rights should not be disproportionate. Affected shareholders, policy holders, beneficiaries, claimants and other creditors of insurance and reinsurance undertakings should therefore not incur greater losses than they would have incurred if the insurance or reinsurance undertaking had been wound up at the time that the resolution decision was taken. That ‘no creditor worse off’ principle is a reflection of the fundamental right to property protected by Article 17 of the Charter. That right should be protected in the administrative resolution procedure by ensuring that any affected shareholder, policy holder, beneficiary, claimant or other creditor is not worse off than under normal insolvency proceedings. The valuation of the treatment that policy holders, beneficiaries and injured parties would have received in such a case should include any payment that policy holders, beneficiaries and injured parties would have received from insurance guarantee schemes, where applicable, and from compensation bodies under Directive 2009/103/EC. In the event of a partial transfer of assets and liabilities of an insurance or reinsurance undertaking under resolution to a private purchaser or to a bridge undertaking, the residual part of the undertaking under resolution should be wound up under normal insolvency proceedings. Shareholders and creditors who are left in the winding-up proceedings of an insurance or reinsurance undertaking should be entitled to receive in payment of, or compensation for, their claims in the winding-up proceedings not less than what they would have recovered if the whole insurance or reinsurance undertaking had been wound up under normal insolvency proceedings.

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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.