Romanian investor Ilie Carabulea said that he will use the money received from selling a 25% stake in the local lender Banca Carpatica to save the insurer Carpatica Asig, which has a capital deficit of EUR 20 million.

He made the promise to the Financial Supervisory Authority (ASF), which accepted not to place the insurer under special administration yet, according to sources cited by local Profit.ro.

Ilie Carabulea and several other shareholders of local lender Banca Carpatica agreed to sell a 25% indirect stake in the bank to American investment fund JC Flowers. The value of the transaction was not disclosed.

The Romanian investor is also in negotiations for selling a majority stake in the insurer to the US financial group Liberty Mutual Insurance, according to sources. The US company is specialized in car insurance, just like Carpatica.

The insurer has been under a recovery plan for a year and a half. Together with Euroins, Astra, which went bankrupt, and Eximasig, Carpatica didn’t pass the stress test carried out by ASF and needs more capital to continue its activity. Carpatica is one of Romania’s top 10 insurers.

editor@romania-insider.com