Romanian insurer fails to attract much-needed capital

Astra Asigurari, one of the biggest insurance companies in Romania, failed to attract the fresh capital it needed to rebalance its financial position, which brings the company one step closer to bankruptcy. Romania's Financial Supervisory Authority - ASF will decide the company's future next week. The second stage Astra’s share capital increase ended on August 19. The company aimed to attract new capital worth RON 425 million (some EUR 95 million), from existing shareholders and other institutional investors, for its financial recovery plan. According to KPMG, the company’s special administrator, there were no significant capital subscriptions and the interested investors haven’t requested an extension of the process to increase Astra’s share capital. The company is currently reviewing possible legal options, but according to KPMG's representatives there are no feasible recovery options without increasing the company's share capital. Astra Asigurari, owned by businessman Dan Adamescu, has been under financial administration for a year and a half. Romanian insolvent insurer Astra Asigurari escapes foreclosure Romanian insurer Astra Asigurari returns to profit, but lowers premium sales Romanian insurer Astra Asigurari gets EUR 14.7 mln new capital from main shareholder Four Romanian insurers fail stress test, need extra capital Romanian insolvent insurer sells 160 million shares to get EUR 95 mln Irina Popescu, irina.popescu@romania-insider.com