Dual insurance protection for the policyholders of the branch office of the Romanian insurer Astra Insurance Company

Budapest, 26 August 2015 – Both the Romanian and the Hungarian insurance system have obligations vis-a-vis the policyholders of the Hungarian branch office of the Romanian firm ‘Astra Insurance Company’ as the Romanian Financial Supervisory Authority supervising the Insurance Company withdrew the business license of the Romanian company and requested liquidation proceedings. The MNB is representing the interests of Hungarian policyholders in the consultations with the Romanian Supervisory Authority.

According to today’s press release on the website of the Romanian Financial Supervisory Authority (ASF), the ASF declared Societatea Comerciala de Asigurare-Reasigurare Astra S.A. Insurance Company insolvent based on its serious capital situation, withdrew its business license and requested the initiation of liquidation proceedings. As the Romanian insurance company has a Hungarian branch office, it has Hungarian policyholders as well. The Hungarian branch office is prudentially supervised directly by the Romanian financial supervisory authority, and not by the Hungarian authority.

Due to the uncertainty involving Astra, the Magyar Nemzeti Bank (MNB) has been in constant contact with the ASF and the Association of Hungarian Insurance Companies (MABISZ), representing the interests of the Hungarian branch office’s policyholders in these consultations. As soon as the ASF informs the MNB, it will immediately hold a press release on the liquidation proceedings, the compensation and the other procedures, according to the Romanian legislation in force.

All Hungarian policyholders of the Hungarian branch office of the Romanian firm Societatea Comerciala de Asigurare-Reasigurare Astra S.A. Insurance Company (Astra Branch office) will be compensated by the Romanian Insurance Guarantee Fund according to the Romanian legislation in force (according to earlier Romanian press releases the coverage is up to EUR 100,000, which is more than HUF 30 million per claim).