SNS REAAL: Dutch Government Investigates SNS Reaal's Financial Statements

By Archie van RiemsdijkAMSTERDAM--The Dutch government said Monday it is investigating the financial statements of SNS Reaal NV, having discovered the nationalized financial group has overstated the solvency of its insurance company, Vivat, for years. The accounting error adds to taxpayer losses on the expected sale of the Dutch insurer to a Chinese insurance group.After nationalizing SNS Reaal in 2013, the government discovered that the capital of its insurance branch was overstated by 700 million euros ($797.4 million).Since the end of the 1990s, cash funds belonging to the insurance unit Vivat, formerly known as Reaal NV, were deposited at SNS Bank, the Dutch finance ministry said Monday. The insurance company reported these deposits as contributing to its capital position, neglecting the fact that they were also used as collateral for a EUR700 million loan provided by SNS Bank.The Dutch state audit agency iThe post Dutch Government Investigates SNS Reaal's Financial Statements appeared first on iMarket Reports.