Asiban goes into financial recovery

The Insurance Supervision Commission (CSA) has ordered the initiation of the financial recovery procedure for insurance company Asiban S.A. The company has to increase its capital by at least 10 million euros, according to official sources. The step was taken after indicators sent by Asiban were analysed, at the request of the supervisory authority, with the solvency rate going under minimum margin of 1, according to the same sources. The measure enforced by the Commission’s Board has no impact on the company’s normal operations, with insurance contracts to be carried out as usual, specifies the CSA. Under the law, Asiban can submit a complaint to the Administrative Litigation Department of the Bucharest Court of Appeal, within 10 days from the date of the notification. The submitting of such a complaint will not suspend the enactment of the CSA decision. Asiban closed the first six months of the year in the red, with the company making an 18,000-euro profit in the first quarter against the 2 million euros in the same time in 2005.