The Board of the Financial Supervisory Authority (ASF) has ascertained that the conditions for applying the provisions of the law on the insurers’ recovery and resolution in Carpatica Asig case are fulfilled, in terms of susceptibility that the undertaking will face a major difficulty situation, as well as in justifying the resolution measures in the public interest, a press release informs on Monday.
Applying these resolution measures, does not affect Carpatica Asig’s core activity, still issuing insurance policies and have normal trade relations, ASF’s president, Misu Negritoiu, assured. According to him, following the talks with the company’s management, it revealed that Carpatica Asig “improved its compensation payment”.
Thus, within a period of six months, ASF shall draft a Resolution Plan and shall designate an independent evaluator, as steps preceding the application of the resolution measures.
For the Board of the undertaking Carpatica Asig, it was established the obligation to implement the measure of attracting a strategic investor and concluding the transaction, as well as to implement the recovery measures provided for in the undertaking Recovery Plan, so that to restore the level of the eligible basic own funds covering the Minimum Capital Requirement (MCR) calculated on January 1, 2016 or to modify the risk profile, so that, within 3 months from the communication date, MCR to be complied with; to restore the level of the eligible basic own funds covering the Solvency Capital Requirement (SCR) calculated on January 1, 2016 or to modify the risk profile, so that, within 6 months from the communication date, SCR to be complied with.
Also, ASF has decided the appointment of a temporary administrator, namely the Policyholders Guarantee Fund (FGA), which shall have as main duties the supervision of the undertaking’s patrimony inventory as of December 12, 2015, the drawing up of the annual financial statements and their audit, as well as the supervision of the fulfillment of the recovery measures, in particular of those related to attracting a strategic investor.
The undertaking management shall have the obligation to consult with the temporary administrator and to obtain its consent before taking decisions or taking actions regarding the undertaking’s assets.