Astra insurance company will increase its shareholders’ equity by more than $36 million by the end of June. Out of the $36 million, $1 million will be contributed in cash, while the rest will be covered by including the City Business Center in the capital, chairman Dan Adamescu said. sleadendt
The building belongs to Astra’s majority shareholder, the Nova Trade company held by Dan Adamescu. The building hosts the headquarters of Connex and Banca ?iriac, which rented most of it.
“This is not just an ordinary asset, it is an office building that makes $2.5-$3 million in revenues a year. I think we’ll get the Insurance Supervision Commission’s approval on this, as it agreed with the first capital increase by asset reassessment,” Adamescu explained.
Astra’s chairman says the insurer has no solvency problems, with this index calculated under the Insurance Supervision Commission (CSA) rules.
He added the calculation of the solvency margin also considered the obligations that might arise from the reinsurance contracts inherited from the former ADAS. At the same time, Adamescu explained the claims yet unsettled amounted to $5.6 million instead of the over $50 million speculated lately.
“There’s only one thing we and the CSA don’t see eye to eye on, and that is the liquidity and not the solvency. We feel the amounts set as reserves in ADAS’ account are not short-term obligations and do not take them into account when calculating liquidity,” Adamescu said.
CSA’s chairman Nicolae Crisan had said on Tuesday that Astra’s solvency ratio as calculated by the company was not accurate, because the exact amount of obligations undertaken had not been properly evaluated.
“We must assess the ways we have to bring this company back on track as we’re getting pretty discouraging signals. The people at Astra cared more about the cash flow. The level of premiums collected also needs to consider the obligations, which are seemingly a little higher than the assets,” Crisan explained.