Ardaf, an insurance company taken over at the beginning of the year by the Czech-based PPF Investments, has decided to sell part of its assets, which consist of both land and buildings worth 6 million euros, located in Bucharest and Constanta. The total value of the company's real estate holdings stands at 18 million euros.
"These are unused assets purchased by the former management of the company, and there would be no point in keeping them," Alina Nastase, communications manager of Ardaf, told ZF.
The company's shareholders will discuss this sale at the general meeting on September 18. The scheduled meeting could also see a decision made concerning life insurance operations.
"The shareholders will analyse whether it is suitable to retain the life insurance segment and to what extent it is profitable for the company. We will then also discuss whether Ardaf will enter the private pensions market or not," explained Alina Nastase.
Ardaf ended the first half of the year with a 30% fall in turnover, from 24.3 million euros. Life insurance accounts for 2.4% of total underwritten premiums and sales on this segment saw a 13% drop in the first half of this year against the same period in 2006. For general insurance, underwritten premiums fell by 30%, to 23.7 million euros.
As yet, Ardaf has not yet revealed whether it made a profit or a loss in the first half. In 2006, Ardaf reported the biggest losses of the whole insurance market, of almost 35 million euros, because of severe financial problems. Last year, the company was under special administration, a step taken by the Insurance Supervision Commission, due to the liquidity and solvency indicators dropping below the legal limit.
Ardaf was taken over at the beginning of the year by the Czech investment fund PPF, through the Sabile Limited vehicle, which purchased the shares from businessman Ovidiu Tender. The Czechs now hold around 70% in the company and have launched a tender offer to purchase the remaining shares.
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