The board of the Romanian Financial Supervision Authority (ASF) has decided on Wednesday to withdraw the operating license of insurer Carpatica Asig, which is in insolvency.
Furthemore, the ASF will ask the opening of the bankruptcy procedure for the insurer, which was founded by Romanian businessman Ilie Carabulea.
According to a Deloitte report seen by journalists at Profit.ro, the Insurance Guarantee Fund (FGA) will have to pay RON 650 million to cover damages to Carpatica’s clients and third parties.
This is the third insurer that might go out of business on the local market in the past two years. The biggest bankruptcy was of insurer Astra, controlled by businessman Dan Adamescu, who is currently serving a jail sentence for bribery. Another insurer that will go out of business in Forte Asigurari, in the case of which ASF has asked for the opening of the bankruptcy procedure.
Close to 94 percent of the shares in Caraptica Asig are owned by Ilie Carabulea through Atlassib Sibiu.
The company managed at the end of last year around 1 million insurance policies, the biggest share being under the mandatory insurance scheme RCA for vehicles.
The losses of the insurer amounted to RON 204.4 million in 2015. Its amount of gross written premiums rose by 5.4 percent to RON 583.72 million in 2015 compared to the previous year. Last year, the firm paid RON 390.9 million for insurance claims.
In June, the International Insurance Consortium said it was interested in taking over Carpatica Asig but the deal failed. The potential buyer said it did not have access to all the data about the insurer, which was under the special administration of the FGA.
In March, the ASF moved to change the management of the insurer, after the several people that were at the helm of the company were detained by prosecutors for setting up a criminal group. Among the people that were investigated there were Ilie Carabulea and his son Oprea Carabulea.