Carpatica Asig underwrote 260,902 insurance policies in January, 43% more than 182,355 policies underwritten in the same month in 2015.
Moreover, the company paid damage claims of RON42 million in the first month of 2016, 20% more than in January a year ago.
End-January 2016, ASF said it will apply resolution measures at Carpatica Asig in order to avoid any potential negative effects on the financial stability of the insurance market, and appointed the guarantee fund of the insured (FGA) as temporary administrator.
The insurance company was supposed to attract a subordinated loan of at least RON30 million and to conclude a transaction with a strategic investor by December 15, 2015.
Mid-January 2016, Carpatica Asig said it started the due diligence procedure by which the company will be financially, commercially and operationally assessed by a strategic investor interested in taking over the company, based on a memorandum signed on December 21.
On February 9, 2016, ASF’s Board decided the insurer’s assets, debts and equity must be assessed by a financial auditor, under the law regulating recovery and resolution procedures for insurance companies. Carpatica Asig will carry out the selection and contracting procedures of a financial auditor, in accordance with the provisions of Norm no. 6/2016. 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
The financial situation of Carpatica Asig, controlled by businessman Ilie Carabulea, worsened after its owner and former general manager were placed under preventive arrest for corruption in January 2014.