Euroasig to file for bankruptcy

The Euroasig insurance and reinsurance company will be filing for bankruptcy shortly, according to a declaration for Business Standard by sources on the insurance market.

Euroasig is not the local insurer to go bankrupt. Grup AS and Metropol were the most visible bankruptcy cases, both subject to problems on the green card [car insurance outside home country] insurance segment. Similarly, the procedure for financial redress applied by the special administrator for the ARDAF insurer was a success in 2006. At the time, the Insurance Supervisory Commission (CSA) powerfully supported the Cluj-based company, which was taken over by the Czech PPF Group's investment arm.

At the end of August, CSA's Board decided that Euroasig will be subject to special administration due to deteriorating indicators of liquidity and solvency. The Board appointed Nicolae Crisan, former CSA President, who fully took over the attributes of the insurer's Board of Directors.

"We have not yet received the decision of CSA's Board regarding the withdrawal of the operating license and the company's bankruptcy," according to a declaration by Crisan for Business Standard.

Business Standard