The funds will most likely be used to cover previous years’ losses and keep the company’s financial indicators within the limits required by the local supervision authority.
The French group had planned to exit the Romanian market, though it has been present locally for only four years, and had even reached a sale agreement with Astra, the company owned by businessman Dan Adamescu. The deal was cancelled, though, because of Astra’s problems.
AXA announced the deal failed as late as end-September. The French group did not specify what would happen with the local subsidiary, only saying it would consider its strategic options.
AXA arrived in Romania in 2010 after buying the life insurance arm of Omniasig for less than EUR10 million.
The French group has invested around EUR40 million to promote and develop the distribution network and initially planned to climb among the top five insurers in Romania in three years. However, it came to have just 40,000 clients.
(English version by Catalina Apostoiu)