AIG Romania, the first insurer to exit CSA umbrella

AIG Romania, the domestic general insurance subsidiary of AIG US group, is going to transfer its business to AIG Europe, a branch registered in France that entered the Romanian market on the basis of the free movement of services in the EU, according to a recent decision by shareholders. After the portfolio transfer, AIG will sell general insurance on the Romanian market through this branch, and AIG Romania will be disbanded. AIG Romania, which posted 27m-euro turnover last year and is a major player on the corporate insurance market, this way becomes the first insurer to exit the “umbrella” of the Insurance Supervision Commission (CSA). After the portfolio transfer, the domestic operations of AIG Europe will be reported to the supervisory authority of France as branches set up on the basis of the free movement of services right do not report to the CSA. Mihnea Tobescu, general manager of AIG Romania, says the activity transfer to AIG Europe will last for around one year. “The branch will operate at the same address, with the same employees and insurance conditions will not change,” Tobescu states.