Distressed Romanian insurer gets capital boost of EUR 0.5 mln

Local insurer Carpatica Asig, which is now under financial recovery procedure, increased its share capital by over EUR 560,000 in a first tranche, reaching EUR 5.5 million. The company aims to increase its client portfolio and to balance its underwritings on the auto segment. Carpatica Asig has until the end of the year to draw a strategic investor. The company needs some EUR 92 million of fresh capital to comply with Solvency II standards that come into force next year, according to the Romanian Financial Supervisory Authority, reports local Economica.net. Romanian businessman Ilie Carabulea controls Carpatica Asig via his transport holding Atlassib. In 2014, Carpatica Asigurari increased its net losses to over EUR 10 million from EUR 6.7 million in 2013. The Financial Supervision Authority decided at the end of May last year to place the company under financial recovery procedure. editor@romania-insider.com