Creditor asks bankruptcy of Romania’s largest City Insurance

The AutoCar group of three companies that manage car service units, has notified the Financial Supervisory Authority (ASF) about requesting in court the bankruptcy of City Insurance, the largest Romanian insurance company, according to a press release of the creditor quoted by Bursa.

The company claims that City Insurance has debts of around RON 1.1 million (EUR 230,000) overdue for more than 120 days and the interest plus penalties bring the total debt up to RON 3 mln (EUR 630,000).

Accordingly, the three companies in AutoCar group, namely Autocar, Autocar, and Trucks and Standocolor have requested the bankruptcy of City Insurance both at the Financial Supervisory Authority (ASF) and in court, the source said.

ASF in a response to AutoCar’s request stated that, by the law, it is entitled to monitor (only) the capital requirements of the insurance firms and in this regard City Insurance meets at this moment the required solvency ratios.

City Insurance currently holds over 45 percent of the RCA market, and Astra and Carpatica did not exceed 33 percent of the RCA market share at the time of bankruptcy.