On August 26, Romania’s Financial Supervisory Authority ASF asked for the bankruptcy of insurer Astra Asigurari, which had been under special administration, after the company failed to raise RON425 million for the share capital hike, while the damage claims would be paid by the Guarantee Fund.
At that time, the company had 1.8 million insurers with 2.5 million valid insurance policies.
On October 2, the court also rejected ASF request on a faster trying of the case.
ASF head Misu Negritoiu stated in September that there is enough money to cover the damage claims from insurer Astra Asigurari, adding that Astra’s situation is not worse than it was before.
The ASF request for Astra bankruptcy came one day after the insurer’s majority shareholders, The Nova Group Investments and Epsilon Estate Provider, controlled by businessman Dan Adamescu, said they want to inject the necessary RON425 million to the company in two stages and asked the financial watchdog ASF to revoke the special administrator KPMG.
The Guarantee Fund needs a final ruling from the court on the bankruptcy procedure to start paying damage claims.
The Nova Group Investments Romania SA owns a 72.71% stake in Astra and Epsilon Estate Provider SRL owns a 26.287% stake. Both companies are owned by local businessman Dan Adamescu.