Fate of Romanian insolvent insurer could be decided in July

Romanian insolvent insurer Astra Asigurari could find out in July whether there is any strategic investor interested in it, said Misu Negritoiu, president of the country’s Financial Supervisory Authority. Astra Asigurari has been under financial administration for almost a year. Its fate is still unclear, as the company’s liquidity ratio approaches zero. “We are in talks with several strategic investors,” said Negritoiu, cited by local Agerpres. The best scenario for the insurer is a capital boost, whereas the worst scenario is liquidation. The middle option would imply selling the healthy assets and transferring a part of the company’s assets and liabilities to the resolution authority, said Negritoiu. However, the draft law which would enable this middle option has been sent to the Parliament and requires the MPs’ vote. Another local insurer, Carpatica Asig, may need a EUR 90 million capital increase, according to Negritoiu. The regulator placed Carpatica Asig under financial recovery procedure in May 2014. editor@romania-insider.com