City Insurance informed ASF on the applicability of a financing mechanism of EUR 30 mln

Georgiana Bendre 13/04/2017 | 15:25

City Insurance says it informed on March 15 the Financial Supervision Authority (ASF) on the measures approved by the authority, including the applicability of a financing mechanism of EUR 30 million imposed through the decisions of ASF Council as financing necessary, says the insurance-reinsurance company in a press release.

„On March 15 the Insurance-Reinsurance company City Insurance notified ASF on the fulfillment of the measures established and approved by the authority. We mention that the notification, as well as the financing formula that the company chose were validated by an external auditor. However, the ASF head was reluctant to this solution, ignoring the legal procedures, the arguments and the experts’ opinion,” says the release.

Also, City Insurance says it informed ASF on the capital increase through two distinct financial operations.

„In order to overcome the situation created and to ensure the optimum conditions to continue the insurance-reinsurance activity, we informed ASF that we understand to enahance the capitalization operations through two distinct financial operations: the replacement of the financing mechanism, with a loan of EUR 50 million, a sum already in the company’s accounts, the increase in the social capital through the attraction of a new investor, already agreed by the heads of ASF with financing up to EUR 50 million,” say the representatives of City Insurance.

Recently the ASF informed that the Council’s members observed the non-fulfillment of the recovery plan by City Insurance and decided, among others, to fine the general director of the company and ban his authorization as manager of the insurer.

BR Magazine | Latest Issue

Download PDF: Business Review Magazine March (II) 2024 Issue

The March (II) 2024 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric
Georgiana Bendre | 27/03/2024 | 17:32
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue