Bucharest, July 20, 2017 – During the yesterday’s meeting of the Financial Supervisory Authority Board, the situation of the Insurance Reinsurance Company City Insurance S.A., a company undergoing a financial recovery procedure based on a plan, was discussed and analyzed.
The members of the Board were informed of the restoration of the insurer’s financial situation on March 31, 2017, based on the documents submitted by the company and the verifications made by the specialized directorates within FSA regarding the granting by the existing main shareholder of a subordinated loan, in cash, in the amount of 50 million euros.
In this respect, the FSA Board has ordered the closure of the financial recovery procedure of the company City Insurance, in accordance with the provisions of art. 20 letter a) of Law 503/2004 on financial recovery, bankruptcy, dissolution and voluntary liquidation in the insurance business.
At the same time, the FSA has instructed the insurer’s management to implement a set of measures for a period of 6 months from the date of receipt of the decision, whereby the Authority will monitor the way in which the MTPL (Motor Third-Party Lialibility Insurance) files are handled, as well as the investment policy of the company.
The FSA Board has decided to open the financial recovery procedure based on a plan at the company City Insurance in April 2016, through FSA Decision no. 901 / 18.04.2016.