City Insurance recovery plan is incomplete, ASF head says

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The financial recovery plan submitted by Societatea de Asigurare – Reasigurare City Insurance SA is insufficient and must be improved. Thus, it will certainly lead to recapitalization, the President of the Financial Supervisory Authority (ASF) Misu Negritoiu said on Thursday.

“It’s about liquidity ratio and solvency ratio. When you look at a recovery, these two indicators are below par and they should be unitary,” Negritoiu explained. ASF head did not mention what is City Insurance’s necessary capitalization , because the amount is disputed by the company.

He confirmed that the company has exceeded the deadline for establishing financial auditor, given that this stage was to be finished in 20 days from ASF’s decision date to initiate the procedure financial recovery, April 18, 2016 respectively.

City Insurance aims subscriptions up by 15-20 percent compared to last year and entry into the top 5 players in the field, by “expanding the involvement in the social sphere” and diversification of insurance portfolio, company’s report on 2015 shows.

Company’s subscriptions increased by 44.6 percent last year to RON 522.9 million, a result that placed City Insurance the 8th in the insurance companies top by the revenue of from life and general insurance, with a share of almost 6 percent.

The ASF decision by which was ordered the opening of the financial recovery of Societatea de Asigurare – Reasigurare City Insurance SA is illegal, the company stated, adding that “all the considerations of this decision does not prove the existence of any of the specified and limited circumstances prescribed by law that would permit such a measure.”

 

 

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