Romania’s Policyholder Guarantee Fund, which will compensate those who held outstanding insurance policies at the Romanian insurance company Astra Asigurari that went into bankruptcy last fall, aims to get RON 680 million (EUR 150 million) from the company’s liquidation.

The fund will thus become the insurer’s largest creditor.

Astra has already started liquidation procedures. Its total number of creditors amounts to 3,600.

Last year, Astra Asigurari lost its license and went bankrupt, following a decision of the financial market regulator ASF, because its shareholders failed to provide the capital needed to balance its financial situation.

Once the court makes a final decision on the company’s bankruptcy, its clients will be compensated by the Policyholder Guarantee Fund (FGA).

This has been the biggest bankruptcy in Romania’s insurance sector. The company had 1.8 million clients which held 2.5 million outstanding insurance policies.

editor@romania-insider.com