The Board of Directors of the National Commission of the Financial Market (CNPF) during the extraordinary meeting of March 9, 2023, approved the decision regarding withdrawal of the license of the insurance company GARANTIE SA (non-life) and submission to the insolvency court of the introductory request regarding filing of the insolvency procedure, moldstreet.com wrote.

At the same time CNPF specified that all policies issued by GARANtIE SA remain valid until they expire.

According to the document published by CNPF, the insurer is in a deplorable financial situation, and the owner would not have made sufficient efforts to save the company from bankruptcy. CNPF cited the report of the insurer's special administrator, which says that the company ended 2022 with losses of MDL 79.4 million. And based on the market ranking for FY2022, out of 10 companies operating on the Moldovan insurance market, GARANtIE SA ranked last.

The company's total debts of MDL 51.7 million are ahead of the total assets of MDL 25.5 million, thus, at the end of 2022 the company registered a negative value of net assets of MDL 26.2 million, which in the regulator's opinion is a legal basis for filing the insolvency procedure as the insurer can't fulfill its obligations due to deep financial instability.

CNPF notes that GARANtIE SA does not comply with the requirements of the regulatory framework in force, reporting a solvency rate of - 235, far below the established level, and the social capital deficit of the insurer amounts to MDL 46.2 million, the source added.

* 1 EUR = 20.3792 MDL (December 31st, 2022)