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The Policyholders’ Guarantee Fund’s 2014 Financial Results

 

Bucharest, 24 March 2015 – The Policyholders’ Guarantee Fund (FGA) had, as at 31.12.2014, equity of 938.75 million lei, by approximately 10% more as compared to the previous year (853.09 million lei). At the same date, the Fund’s available funds were 909.11 million lei, up by 7.6% as compared to the end of 2013. 

The Evolution of Financial Availabilities of FGA:





Budget Execution

Income from contributions owed by insurance undertakings reached, in 2014, 58.46 million lei, as compared to 59.12 million lei in 2013. In 2014, the quotas for insurers’ contribution to PGF were maintained at the level of the previous year: life insurance: 0.3% of the gross written premiums (GWP) and 0.8% in GWP for non-life insurance. In 2014, 45 insurers paid contributions to PGF, of which 37 are insurance undertakings authorized by ASF and 8 are branches of the insurance undertakings in the European Economic Area opened in Romania on the basis of the right of establishment.

At the same time, last year, PGF’s income from financial investment was 32.31 million lei as compared to 40.67 million lei in 2013.

The total revenues obtained by FGA was approximately 90.77 million lei, with around 9 million lei less than 2013.

Operational expenditure incurred last year was 12.70 million lei, down by 5.62 million lei as compared to 2013, of which 1.29 million lei were payments of compensation/indemnities relating to insurance creditors.

Last year, PGF registered a surplus of about 78.07 million lei, less by 2.94 million lei as compared to the previous year.

FGA’ Financial Investment

Through the effective management of its resources, FGA seeks to respond promptly in the situations provided in Law No. 503/2004, by paying indemnity/ compensation to insurance creditors.

Thus, at the end of 2014, PGF’s available funds were placed in: current accounts, deposits, government bonds at credit institutions and State Treasury. The main objective of mitigating the risk may be seen from the holdings of government bonds, which at the end of 2014 represented 68.67 % of all investments, while the share of deposits in all investments was 30.27%, and that of available funds of current accounts was 1.06%.

PGF’s main tasks aim at analyzing, verifying and approving loss files and insurance claims entered in its accounts, and paying compensation to insurance creditors from its available funds, in accordance with the law and based on the decision of the Special Commission.

PGF’s 2014 activity report may be found at www.asfromania.ro.

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About ASF

The Financial Supervisory Authority (ASF) is the institution that authorises, regulates, supervises and controls the entities operating on the non-banking financial market in Romania.

Established in 2013 through assuming and reorganising all powers and prerogatives of the National Securities Commission (CNVM), Insurance Supervisory Commission (CSA) and Private Pension System Supervisory Commission (CSSPP), ASF contributes to strengthening an integrated operational and supervisory frame on three markets amounting to more than 10 million participants.

More information may be found at www.asfromania.ro