MOLDOVA: Insurer TRANSELIT subjected to financial recovery proceedings

15 January 2014 —
transelitThe Financial Supervisory Authority of Moldova (CNPF) has approved the opening of the financial recovery proceedings for TRANSELIT insurance company. The decision was taken due to the conclusions of CNPF's control showing that the company failed to observe the legal provisions with regard to the formation of insurance reserves, the level of solvency margins and the liquidity ratio.

In the first 9 months of 2013, TRANSELIT recorded a solvency ratio of 58.1%, which is below the level set by the law. Moreover, the company didn't succeed in diversifying its assets according to the legislation, which led the total volume of assets admitted for covering the technical reserves to fall under the required level by about EUR 440,000, contrary to the Regulation for the solvency margins and the insurers' liquidity ratio.

Within 10 days the insurer's management team must submit a financial recovery plan to the supervisory authority's approval and also bring in the next three months the solvency ratio to the level stipulated by the legal norms.

TRANSELIT is the second company subjected to the financial recovery proceedings in 2013. A similar procedure was opened to the insurance company EUROASIG Group.

At the end of September 2013, the total value of gross premiums written by TRANSELIT insurance slightly increased to MDL 22.68 million, up by 0.64% y-o-y.

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