Last Tuesday, the country’s Financial Supervision Authority (ASF) ordered financial recovery procedures and placed Astra under special administration.
The authority suspended the prerogatives of the company’s shareholders and management and appointed KPMG as special administrator.
Astra is suspected of having underestimated its due damage claims and lowering its minimum required reserves by 40%, or RON100 million. The Romanian central bank notified the anticorruption department of the situation.
KPMG will have to urgently start legal procedure to raise the insurer’s capital for the observance of solvency rules.
Astra Asigurari shareholders are The Nova Group Investments Romania SA – 72.68% and Epsilon Estate Provider SRL- 27.02%, jointly with several individuals and legal entities, with stakes representing 0.3% of the share capital. The Nova Group Investments Romania and Epsilon Estate Provider are indirectly controlled by businessman Dan Adamescu.
The company ranks first on the Romanian insurance market, with subscriptions exceeding RON1 billion in 2012 and over four billion clients.