Insurance market could require €250-300 mln in capital injection in 2009

“There is less and less cash, and this is increasingly more expensive, and in this context I ask myself if shareholders will be available to sustain this effort,” added Constantinescu.

Last year, capital increases on the local insurance market exceeded €270 million.  In the September 2008 – January 2009 period alone, capital worth €150 million were injected, according to Angela Toncescu, President of the Insurance Supervisory Commission (CSA).  Toncescu indicated that at present all insurance companies are within the limits of solvency.  CSA will be able to present a complete picture of the market’s evolution in 2008 only at the end of April, she added.

The most significant capital increases in 2008 were over €55 mln for BT Asigurari, €36 mln for Unita, over RON 34 mln for Asirom, €30.1 mln for Omniasig, and €25.4 mln for Asiban.

The coordinator of Romanian operations for Generali PPF Holding, Maria Kovarova, said recently that there will be increases for two of the holding’s local companies this year, Generali Asigurari and ARDAF.  Kovarova, who is also General Manager of Generali Asigurari, indicated that ARDAF could benefit from the largest share of funds allocated, to cover its losses in 2008.