ASF puts end on City Insurance’s financial recovery procedure

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After more than a year, City Insurance exits financial recovery procedure, the insurer management will apply a set of measures for 6 months, Financial Supervisory Authority (ASF) announced in a press release.

Authority has instructed the insurer’s management to implement a set of measures for a period of 6 months starting the date of receipt of the decision, whereby the ASF will monitor the way in which the RCA claim files are handled as well as the investment policy of the company.

“The members of the Board have been informed about the recovery of the insurer’s financial situation on March 31, 2017, based on the documents submitted by the company and the verifications made by the ASF specialty directorates regarding the granting by the existing main shareholder of a subordinated loan, in cash, in the amount of EUR 50 million,” the release reads.

Established in 1998, City Insurance is controlled by Vivendi International SRL – 85.23 percent, Nicolae Musat – 8.9 percent, Fortuna Coppola – 2.37 percent, Cristian Pascale – 1.91 percent and other physical and juridical persons – 1 58 percent. The sole shareholder of Vivendi International is Dan Odobescu, the brother-in-law of former Prime Minister Adrian Nastase.

Last year, City Insurance subscribed premiums of RON 789.62 million, ranking 6th in the top of insurance companies.

The Board of ASF decided to open the Financial Recovery Plan procedure for City Insurance in April 2016, through ASF’s decision no. 901 / April 18, 2016.

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