Supervisor and shareholder agreed that selling is the best option for Romanian insurer ASTRA Asigurari

12 June 2014 —
astra_asigurari_120The sale of ASTRA Asigurari, the second largest company on the Romanian Market, is the most suitable solution to bring the insurer back on track, according to Misu NEGRITOIU, the President of the Romanian Financial Supervisory Authority.

He said that KPMG, the current administrator and the majority shareholder have come to the conclusion to identify potential investors which can bring the necessary capital for the insurer to meet the normal standards. According to the president of FSA, there have been some investors who already expressed their interest.

"ASTRA Asigurari bares the responsibility of 4 million clients and our duty is to save the company. There are interested investors and discussions continue through the special administrator and through its main shareholder", NEGRITOIU said.

ASTRA Asigurari's GWP decreased by one third in the first three months of 2014, reaching EUR 49,4 million.

ASTRA Asigurari needs to raise around EUR 110 million in new capital to improve its prudential indicators, according to a recovery plan drawn up by its special administrator KPMG Advisory that was approved by the Financial Supervision Authority (ASF) earlier this year.

ASTRA Asigurari was placed under special administration in February, the main reasons of the FSA's decision being related to the company's bad reputation regarding claims payment, confirmed by the authority's findings, the undervaluation of the technical reserves, the doubtful reinsurance program and a series of financial operations within the ASTRA's affiliates group which affected the company's capacity to fulfill its obligations towards their insured. The insurer is controlled by Romanian businessman Dan ADAMESCU.

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