Romania’s Financial Supervisory Authority (ASF) slapped fines totaling RON 11.9 mln (EUR 2.42 mln) on City Insurance, the country’s biggest insurer, and its management team. City Insurance's top executives and Supervisory Board members were fined RON 1 mln (EUR 203,000) each while the company will have to pay RON 2.9 mln (EUR 595,000).

The financial markets watchdog also revoked the licenses for City Insurance’s top management and Supervisory Board members and suspended the voting rights of its majority shareholder Vivendi International.

City Insurance was placed under the management of the Insurance Guarantee Fund for the next four months. The company has to come up with a financing plan to restore its own funds according to the legal requirements.

The ASF’s decision comes two months after the company announced that its majority shareholder Vivendi International reached an agreement to sell its stake to the Netherlands-based I3CP Holdings.

The company said it managed total assets of EUR 700 million and gross written premiums of over EUR 500 million, serving more than 4 million customers. The company had a market share of 20% of Romania’s insurance market by gross written premiums in 2020, according to ASF data.

editor@romania-insider.com

(Photo source: Inquam Photos / Octav Ganea)