Controversial assessment in the insurance field: Astra, Carpatica, Euroins and Exim, in serious situation? Euroins challenge the assessment, the data are outdated

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The Financial Supervisory Authority (ASF) has held a press conference on Thursday on the results of an assessment conducted by independent auditors regarding 13 largest insurers, who pointed out that Astra, Carpatica, Euroins and Exim have an aggregate capital shortfall of EUR 356 million, the last two having to submit to ASF, until August 4, the plans including the measures to be taken until October 15, 2015, hotnews.ro informs.
ASF President Misu Negritoiu, and ASF first-vice-president Cornel Coca Constantinescu have acknowledged on Thursday that the data is outdated, that ‘many things happened since last year, and now things look a little better.’
Four insurance companies had an aggregate capital shortfall of RON 1.6 billion on June 30, 2014, as required by ‘Solvency I’, but their solvency would be better if the valuation of assets and liabilities would be made ‘to date’, given that during the last 12 months some companies have already increased the share capital, said on Thursday Misu Negri?oiu.
Misu Negri?oiu argues that “there are things that have been corrected in the meantime.”
“There are several companies, including international ones, to have corrected these deviations. In the next phase, 20 days for the action plan – October 15 to become operational – we’ll be waiting to be informed about the measures to be implemented. There are no problems, as you have seen, apart from the three large companies: Astra, Carpatica and Euroins. Euroins has increased its share capital, Astra has released some risks. The others are ok, even if having some minor deviations,” said Negri?oiu.
The problem is that the assessment was based on financial statements valid at June 30, 2014, hotnews.ro further informs. Euroins already is challenging the results, accusing the auditor KPMG Audit of not taking into account subsequent events and the ASF that it has not kept its promise to reflect in the final result all the efforts for recovery made by the shareholders after June 30, 2014.
ASF released on Wednesday evening the assets and liabilities evaluation results and the result of a stress test on the insurance sector in Romania. Specifically, the assessment was made by ASF, in close cooperation with the European Insurance and Occupational Pensions Authority (EIOPA) and the European Commission (EC), with the support of five international audit firms and an international consulting firm, the aim being to strengthen the confidence in the insurance sector in Romania.
The assessment was based on existing financial statements on June 30, 2014 and the results announced, quite serious at least in the cases of four insurance companies – Astra, Carpatica, Euroins and Exim – have sparked the insurers’ reactions.

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