Romanian insurance company Astra Asigurari announced a net profit of EUR 12.2 million for the first nine months of 2014, after recording over EUR 200 million losses for the whole year, in 2013.

The company’s premium sales totalled EUR 125 million in the first nine months of last year, down by 30% compared to the same period of 2013, according to the financial results published by Astra’s special administrator KPMG. As a result, Astra lost first place in the local insurers ranking.

Astra Asigurari was placed under special administration by the Financial Supervisory Authority (ASF), in February 2014, due to financial problems.

After analysing the company’s financial situation, KPMG announced that Astra needed EUR 110 million in new capital to balance itself. Last year, the company’s capital was increased by some EUR 14.6 million.

After this operation is finalised, KPMG will start a new capital increase, for a larger amount, which will be addressed to both the company’s current shareholders as well as to new strategic investors. The goal is to bring in a new strategic investor which would ensure the company’s financial stability for the future.

The Nova Group Investments, a firm owned by Romanian businessman Dan Adamescu, is currently Astra’s majority shareholder.

Dan Adamescu was arrested in June last year in a corruption case in which he was accused of bribing two judges. He was placed under house arrest in August.

editor@romania-insider.com