Milan's public prosecutors office has completed an investigation into Luxembourg headquartered Lombard International Assurance (LIA) over allegations of tax evasion and money laundering as part of a wider ranging crackdown on other insurance companies.
Italian newspaper Sole 24 Ore had reported the investigation last week and Reuters separately cited two judicial sources in its subsequent story.
LIA, which was acquired in 2014 for €399m by US investment fund Blackstone Group, will pay €52.7m to the Italian tax authorities to settle a dispute related to "non-compliant" life policies for several billion euros, Sole 24 Ore reported.
The Milan prosecutor's office and the Milanese Guardia di Finanza had challenged a taxable amount subtracted from taxation for over €500m in 2021 and the company had been registered in the register of suspects with the hypothesis of a crime of recycling.
An assessment was reached with the Revenue Agency which significantly reduced the tax claims but ensured the payment of €52.7m.
The newspaper further stated that the agreement with LIA gave new impetus to investigations into another hundred insurance companies on which the Milan Public Prosecutor's Office launched a maxi-investigation for tax evasion and money laundering last year.
LIA confirmed to Sole 24 Ore following a detailed examination and in full cooperation with the Italian tax authorities, an agreement has been concluded.
According to a statement sent to Reuters "LIA acts in full compliance with all the relevant laws in the jurisdictions where it operates", while also adding that it always cooperated with authorities and that it operates a full branch structure in Italy.
