Romanian insurance firm Astra Asigurari, which was placed under special administration by decision of the Financial Surveillance Authority (ASF) earlier this year, will have to up its social capital by some EUR 110 million within a year.

The ASF recently approved the reorganization plan drafted by the special administrator KPMG Advisory, which includes the increase in social capital. In a first phase, Astra will have to increase its social capital by some EUR 15.5 million.

Other measures include amicably solving several litigations stemming from insurance claims, as well as recovering several due loans granted by the company. KMPG also advised the company to implement corporate governance measures to stabilize their long term business model.

Astra is the largest insurance company in Romania, and last year agreed to buy Axa Insurance firm in Romania, but the deal was not finalized. Earlier this year, ASF decided to suspend the shareholders and the management of Astra, in order to help the firm recover financially, with KPMG taking over all the management and shareholders’ attributions.

Astra Asigurari reported revenues of some EUR 133 million from premiums in the first half of 2013, up 16 percent on the same period of 2012. The company, which has been active since 1991, is controlled by The Nova Group Investments România – 72 percent of the shares, and Epsilon Estate Provider SRL- 27 percent, plus a group of individuals and companies who control the rest. Both companies are owned by businessman Dan Adamescu, who also owns the Intercontinental Hotel in Bucharest.

editor@romania-insider.com