The board of Romania’s financial market regulatory body - ASF decided to withdraw the functioning authorization of local insurer Certasig because the company hasn’t increased the level of own funds in line with the minimum capital requirements (MCR) within the deadline provided by law.
At the same time, the ASF board ascertained the insolvency status of Certasig and decided to initiate legal steps to open the bankruptcy proceedings against the insurer.
According to Profit.ro data, Certasig needed a capital infusion of between EUR 5.5 mln and EUR 6 mln, of which about EUR 2 mln to meet the minimum capital requirement (MCR). The money was supposed to be brought to the company by its owner ABC Assevera, a financial company in Italy, earlier this month.
Certasig collected insurance premiums in amount of RON 57.77 mln (EUR 12.4 mln) in 2018, down 11.7% compared to 2017, while its losses for the same year doubled to RON 22.3 mln (EUR 4.8 mln). The financial data for 2019 is not available.
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