Opening the financial recovery procedure by special administration at the insurance and reinsurance company in another member state
Romanian Financial Supervisory Authority by its decision no. 42 of 18 February 2014 has been decided the opening of the financial recovery procedure by special administration of the insurance-reinsurance company SOCIETATEA COMERCIALA DE ASIGURARE-REASIGURARE ASTRA S.A. in order to protect the rights of the insurers and to promote the stability of the insurance activity in Romania.
The financial recovery procedure has been opened mainly because company counteracted regulations concerning the methodology for calculation and evidence of the minimum technical provisions for the non-life insurance and the company did not set and maintain the loss reserve in accordance with the law. Further, because by the reason of decreasing of the liquidity ratio related to the non-life insurance on 31 December 2013, company was below the established limit. And because the value of the solvency margin related to the non-life insurance falls below the minimum solvency margin.
Opening the financial recovery procedure by special administration does not have implications related to the commercial activity undergone by the company – the insurance contracts in force are to be run in normal conditions.
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