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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Romania’s biggest insurer City allegedly reported inexistent reserves

Romania’s biggest insurer City reported inexistent resources as part of its capital requirements, the financial markets regulator ASF states in the decision by which it put under external management the insurer. “Hundreds of millions of RON” were missing, according to Ziarul Financiar daily.

As a result, the coverage ratios were negative.

Thus, after the adjustments made by ASF to the financial records of the insurer, taking into account the lack of cash in the records of the banking company, with which the insurer would not have contractual relations, the value of own funds available and eligible for solvency capital requirement (SCR) and minimum capital requirement (MCR) turned negative.

From an SCR coverage of 1.25 and MCR of 3.25, ASF corrected the figures to an SCR coverage of -0.27979 and -3.1752 for MCR, respectively.

The decision, published in the Official Journal on June 7 (and by Hotnews.ro), details the grounds that led to the massive (RON 10.9 mln, or over EUR 2 mln) fines levied against the insurer’s management and the company itself.

The insurer’s shareholders were asked to come up with a financial recovery plan. 

(Photo: Whirlitzer/ Dreamstime)

andrei@romania-insider.com

Normal
Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Romania’s biggest insurer City allegedly reported inexistent reserves

Romania’s biggest insurer City reported inexistent resources as part of its capital requirements, the financial markets regulator ASF states in the decision by which it put under external management the insurer. “Hundreds of millions of RON” were missing, according to Ziarul Financiar daily.

As a result, the coverage ratios were negative.

Thus, after the adjustments made by ASF to the financial records of the insurer, taking into account the lack of cash in the records of the banking company, with which the insurer would not have contractual relations, the value of own funds available and eligible for solvency capital requirement (SCR) and minimum capital requirement (MCR) turned negative.

From an SCR coverage of 1.25 and MCR of 3.25, ASF corrected the figures to an SCR coverage of -0.27979 and -3.1752 for MCR, respectively.

The decision, published in the Official Journal on June 7 (and by Hotnews.ro), details the grounds that led to the massive (RON 10.9 mln, or over EUR 2 mln) fines levied against the insurer’s management and the company itself.

The insurer’s shareholders were asked to come up with a financial recovery plan. 

(Photo: Whirlitzer/ Dreamstime)

andrei@romania-insider.com

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