GALAS GIVES UP LICENSE FOR OPERATING IN INSURANCE

The insurance company Galas has announced the voluntary surrender of the license for activities in insurance.

According to the National Commission for Financial Market (NCFM), the corresponding decision has been made by the company’s only shareholder. Earlier, at the beginning of August, the NCFM applied a temporary procedure for financial recovery of the insurance company taking into account the economic and financial situation in the company in the first half of the year. At that time, the company was forbidden to enter into new insurance contracts for all classes of insurance. The NCFM also approved a 12-month financial recovery plan for Galas.

According to the Commission, in January-June, the Galas assets totaled 95.6 million lei, and the capital – 23 million lei and profit – 5.2 million lei. The company issued a bonus worth 20 million lei. The level of its solvency rate is 65.28%, and liquidity ratio is – 7.09.

Over the past three years, the regulator revoked five licenses from insurance companies. The first in this sense were Аsito and Аlliance Insurance Group. For several years, these companies had specific situations caused by non-transparent owners. Later, the NCFM revoked the license of insurance company Sigur-Asigur. The company voluntarily applied for the revocation of its license due to unfavorable market conditions for life insurance, since it was its primarily activity. Very recently, the capital market regulator suspended the license of the insurance company Klassika Asigurări for six months.

There are other companies under the NCFM supervision, which do not fully meet the criteria of solvency and capital reserves with insufficient capitalization. Currently, the Garantie, Moldasig и Moldova-Astrovaz companies are undergoing the procedure of financial recovery.

The NCFM notes some positive results, which have already been achieved by the Moldova-Astrovaz company. According to the financial recovery plan approved by the insurer’s shareholder, the company expects to increase its authorized capital by the end of 2019, take measures to reduce costs, limit the issuance of “green card” policies in order to stabilize its economic and financial situation.