Moreover, the company’s executive team will also focus on speeding up efforts to meet the solvency requirements in accordance with Solvency II.
The insurer said the program aimed at introducing new products or revising the existing ones will continue at the same pace.
ASF announced Monday that it will apply resolution measures at insurance company Carpatica Asig in order to avoid any potential negative effects on the financial stability of the insurance market, and appointed FGA as temporary administrator of the insurer. ASF will draft a resolution plan in six months at most and an independent evaluator is going to make a fair, prudent and realistic assessment of the insurer’s assets, debts and equity, as a preliminary step towards applying the resolution measures.
Carpatica Asig’s Executive Board is obliged to implement the measure aimed at attracting a strategic investor and concluding the transaction, as well as other measures, in order to re-establish the level of the basic eligible own funds that cover the minimum capital requirement (MCR) calculated on January 1, 2016 or to amend the risk profile so that MCR can be observed three months since announcing the decision.
Mid-January 2016, Carpatica Asig said it started the due diligence procedure by which the company will be financially, commercially and operationally assessed by the strategic investor interested in taking over the company, based on a memorandum signed on December 21.
Carpatica Asig, controlled by businessman Ilie Carabulea, signed on December 21 a memorandum of understanding with an exclusivity clause with a “European strategic investor” interested in taking over and developing the company.
Carpatica Asig, based in Sibiu, started a financial recovery plan approved by ASF in September 2014, and valid until the end of 2015 but failed to observe the deadlines, so that ASF expressed skepticism over the investor interested in the takeover. The company should have attracted a subordinated loan of minimum RON30 million and close a deal with a strategic investor by December 15, 2015.
The company’s shareholders include Atlassib Sibiu (92.77%) and Transcar Sibiu (6.64%), both held by Carabulea, as well as several private individuals (0.59%).
Carpatica Asig’s financial situation worsened after its owner and former general manager were placed under preventive arrest for corruption in January 2014.