Local investor Dan Adamescu, the majority shareholder of Astra Asigurari, one of the biggest insurance companies in Romania, said that he planned to bring the EUR 95 million extra capital that the insurer needs to continue its activity, as requested by the Financial Supervisory Authority (ASF), but under certain conditions.

Nova Group and Epsilon Estate, the two companies through which Adamescu holds a majority stake in Astra Asigurari, have suggested that the capital increase should be carried out in two stages, and not all at once, reports local Capital.ro. The insurer should receive EUR 33.7 million by the end of this year, and another EUR 61.9 million by September 30, 2016.

Adamescu made the announcement a few days after ASF and the insurer’s special administrator KPMG said that Astra failed to attract the fresh capital it needed to rebalance its financial position. The second stage of 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.

In order to boost the capital, the insurer’s majority shareholder, also demanded that the company’s special administrator KPMG be removed. It also asked ASF to allow the takeover of Axa Life Insurance by Astra and to revoke the decision that limits the company’s sales of mandatory car insurance RCA.

editor@romania-insider.com