Insurer Astra Asigurari, which is currently under special administration, recently received EUR 14.7 million in new capital from its main shareholder, Romanian businessman Dan Adamescu, via two companies.

The insurance firm thus raised its share capital to EUR 58.3 million. This increase is part of the financial recovery plan that was approved by the company’s special administrator KPMG in June this year.

Astra Asigurari, which was the largest insurer on the local market by gross premiums underwritten, in 2013, was put under special administration by the Financial Supervisory Authority (ASF), at the beginning of this year, due to poor financial indicators.

The company needs some EUR 110 million in new capital to rebalance financially. The EUR 14.7 million represent the first phase of its recovery plan.

“The second capital increase operation is also a significant phase in the financial recovery of the company. This will be open both to the company’s shareholders and to strategic investors,” according to KPMG.

Astra Asigurari is almost fully controlled by Romanian businessman Dan Adamescu, who is currently under arrest in a corruption case for having bribed judges.

editor@romania-insider.com