Romanian insurer needs to raise EUR 30 million worth of new capital

Romania’s Financial Supervisory Authority (ASF) has approved the recovery plan for the local insurer City Insurance. The aim is to restore the company’s financial situation by December 31 this year. The insurer needs to increase its capital by EUR 30 million through a shareholder loan by the end of September this year. City Insurance also needs to finalize and submit the audit done by Deloitte until 30 September 2016. The insurer is also required to recover the loans granted to affiliated companies, such as City Invest, its partners, Unity Broker, and other companies. These loans amount to EUR 39 million. The measures will not affect the company’s activity and the issued policies are valid until they expire. City Insurance is one of the top players on the local mandatory car insurance (RCA) market. The company had gross written premiums of some EUR 113 million and EUR 1.14 million losses in 2015. City Insurance is one of the main sponsors of the Steaua Bucharest football club. Romanian insurance market sees EUR 60 mln losses in 2015 editor@romania-insider.com