ASTERRA ranks second in the Republic of Moldova insurance market, with GWP at 30 September 2020 amounting to EUR 9.35 million, 26.5% up over 3Q2019, while most local insurers recorded decreasing business volumes. The company accounts for 17.45% of the total market GWP, gaining in the last year almost 6 additional percentage points.
"The financial position of ASTERRA Grup is stable, and our performances demonstrate a positive payment capacity and in accordance with the normative acts," Roman ANDRONIC, General Director of the insurers stated for xprimm.md. "Our solvency indicators are above the legal minimum limits, ASTERRA having even one of the highest liquidities in the insurance market," he added.
According to the statement, ASTERRA holds the first place in the top of the compensations paid in 2020, with almost MLD 100 million (~EUR 4.8 million). "During its entire existence, ASTERRA GRUP was not subjected to any financial recovery, remediation or special administration procedures, which demonstrates that we have always operated in accordance with the legislation in force ", added Roman ANDRONIC.
The reaction of ASTERRA comes as a result of the decision of January 12, 2021 of CNPF, the local financial market authority, to officially warn the top management of ASTERRA Grup and TRANSELIT, until September 30, 2021. CNPF requests the undertaking of measures to remedy and liquidate the deficit of assets allowed to cover technical reserves and the minimum solvency margin, registered as of September 30 last year. According to the company's standpoint, the situation occurred following the change adopted by XNPF in the regulation concerning the structure of assets allowed to cover technical reserves, as well as the additional placement of half of the MSM (Minimum Solvency Margin) in the insureds' fund. Currently ASTERRA is in course of changing its assets structure, focusing on the reallocation of the assets not admitted for the reserves coverage towards the insureds fund. The technical gap is expected to be remedied in a short period of time.