Romanian insurance company Astra’s shareholders recently approved a EUR 109 million share capital increase, which will be done in several stages within a year, according to its special administrator KPMG. The first tranche of the share capital increase will be of some EUR 15.5 million.

This is one of the measures included in the activity relaunch and financial restructuring plan for Astra, which was placed under special administration in March this year. The company’s shareholders also decided to name Deloitte the new auditor for Astra.

“The success of this restructuring plan we proposed and approved by the Financial Regulation Authority ASF is largely dependent on the support from Astra shareholders,” according to KPMG.
Astra is the largest insurance company in Romania, and last year agreed to buy Axa Insurance firm in Romania, but the deal was not finalized. Earlier this year, ASF decided to suspend the shareholders and the management of Astra, in order to help the firm recover financially, with KPMG taking over all the management and shareholders’ attributions.

Astra Asigurari reported revenues of some EUR 133 million from premiums in the first half of 2013, up 16 percent on the same period of 2012. The company, which has been active since 1991, is controlled by The Nova Group Investments România – 72 percent of the shares, and Epsilon Estate Provider SRL- 27 percent, plus a group of individuals and companies who control the rest. Both companies are owned by businessman Dan Adamescu, who also owns the Intercontinental Hotel in Bucharest.

editor@romania-insider.com