Romania’s Financial Supervisory Authority (ASF) rejected Dutch company International Insurance Consortium – IIC’s intention to take over local insurer Carpatica Invest, which has been under special management since the beginning of this year due to big financial problems.

ASF has determined that the potential buyer didn’t have the necessary funds to recapitalize Carpatica Invest. IIC requested a 2-year exemption from meeting the Solvency II prudential requirements while the ASF needed the investor to bring the necessary funds to the insurer’s capital in nine months, according to the regulator.

IIC announced on Wednesday that it decided to withdraw its bid for Carpatica Asig claiming that the company’s special administrator, the Policyholders Guarantee Fund – FGA had blocked its access to relevant information about the company’s situation. IIC also said that Carpatica Asig’s financial indicators have gotten worse in recent months.

Carpatica Invest, a company founded by local investor Ilie Carabulea, has been monitored by the ASF for its financial problems since April 2014. The company has a capital deficit of some RON 500 million (EUR 110 million). Its owner and managers were charged with forgery, at the beginning of this year, as they have been altering the company’s financial statements to hide the extent of its problems.

editor@romania-insider.com