Romanian insurer Certasig goes bankrupt
Romanian small-sized insurer CertAsig went bankrupt at the request of the Financial Supervisory Authority (ASF). Its market share was under 1% in 2018.
The authority filed the request as the company did not restore the level of eligible equity covering the minimum capital requirement (MCR) within the deadline provisioned by law. CertAsig needed a capital infusion of between EUR 5.5-6 million, of which about EUR 2 million to meet the minimum capital requirement (MCR).
The previous bankruptcies on the Romanian insurance market were Astra and Carpatica Asig in 2016.
ASF filed the request in February, and the final decision is now signed. Cristian Dăianu, the general manager CertAsig, told Profit.ro that the bankruptcy occurred due to the lack of financial support from the majority shareholder, Royalton Capital Investors II (RCI II).
"More details will be present in the report that the judicial liquidator will draw up in the next period, according to the legal provisions," Dăianu added.
CertAsig was established in 2003, following the merger between Fortuna and the Romanian-Canadian insurance company Aroca Bucharest. In December 2007, Royalton Capital Investors II (RCI II) acquired 95% of the shares in CertAsig, through CertAsig Holdings Luxembourg.
CertAsig recorded in 2018 insurance premiums of RON 57.77 mln (EUR 13 million) in a total market worth RON 8 billion (EUR 1.8 bln).
(Photo: Kenishirotie/ Dreamstime)