Dutch-based company I3CP failed to transfer in due time, namely by the end of September 6, the promised EUR 150 mln capital injection to Romania’s biggest insurer City Insurance, announced the local financial markets regulator ASF.

Consequently, the City will not be able to meet the capital requirements, ASF concluded, adding that “the situation will be analysed and the necessary decisions will be taken.”

ASF has not commented about the possible decisions it is considering, but the regulator’s vice-president Cristian Rosu stated at the end of last month that “the immediate measure is to open bankruptcy proceedings.”

I3CP had announced at the end of August that it subscribed new shares worth EUR 150 mln in a capital increase operated by City.

In May, the local financial market regulator ASF placed City Insurance under special administration due to financial problems mainly related to insufficient legal reserves.

City Insurance, the only insurance company in Romania that is not affiliated with an international group, was the leader of the insurance market in 2020, with written premiums of about RON 2.3 billion (EUR 470 mln).

The capital deficit, hidden by fraudulent schemes according to ASF’s findings, is close to RON 845 mln (over EUR 170 mln).

(Photo: Pixabay)

andrei@romania-insider.com