AFTER THE PROSECUTORS' SEARCHES AT 49 BRANCHES VIG has begun an internal audit at Omniasig

• "Based on the number of documents that were seized, no conclusion can be drawn concerning the number of policies that are being audited (around several thousands)", the representatives of VIG say

Vienna Insurance Group (VIG) is conducting its own audits at "Omniasig", where last week searches were conducted and several people are suspected by the prosecutors of abuse in office and forgery.

The prosecutors of the High Court of Cassation and Justice have stated that Omniasig would conclude optional insurance policies and would backdate them, to make it look like they had been signed prior to the law which made it mandatory to conclude mandatory home insurance policies, and to collect the insurance premium for the PAID.

The board of directors of "Omniasig" told its customers that all the policies issued by the companies are safe and valid and that the company stands by its commitment to honor all its contractual obligations to its customers regardless of the outcome of the investigation. A similar message came from the president of the Financial Oversight Authority, Mişu Negriţoiu, who said that the situation is under control: "We have made sure that none of the holders of these policies will be affected".

The searches at "Omniasig" took place just one day after Peter Hagen, the CEO of VIG, criticized the PAID.

The representatives of Vienna Insurance Group were kind enough to respond exclusively for BURSA, to a few questions concerning the "Omniasig" case.

Question: As Omniasig is part of the VIG group, how was it possible to forge the insurance policies on such a scale (1 million documents, seized by the prosecutors in 49 branches)?

Answer: The investigation conducted by the prosecutors was started off on suspicions which are still being investigated. It is certain that based on the number of documents that have been seized, we can't draw a conclusion on the number of policies that are being audited (approximately a few thousands). We fully support the prosecutors' efforts and at the same time, we have begun an internal audit process. Please understand however that these investigations are ongoing.

Question: What internal measures will VIG enact, to avoid such incidents from happening in the companies it owns in Romania?

Answer: It would be extremely imprudent to take any kind of measures prior to the closure of the investigations and before we knew exactly what has happened. Obviously, should there be clear evidence on any irregularities committed by the employees of Omniasig, we will urgently take the necessary measures.

Question: Will Mihai Tecău be replaced at the helm of Omniasig, even though it is just this month that you have extended the terms of the members of the Board of Directors by four years? Were there any employees of Omniasig that were sanctioned /suspended /laid off? If yes, how many and on what positions?

Answer: Once the investigation is completed and we know exactly what has happened, we will take the necessary measures. Until then, it is just a matter of fairness and professionalism to grant the presumption of innocence and our full confidence to the management of the company and to our employees.

Question: You said that "if confidence drops, this affects the whole industry". How is VIG handling the "Omniasig" case and how does it intend to regain its customers' trust?

Answer: We have already informed the public and our customers that all the policies issued by the company are safe and valid and that Omniasig stands by its commitment to fulfill all its contractual obligations regardless of the outcome of this investigation. The relevant institutions that are auditing the situation have confirmed that the policy holders are not affected.

Question: What is your opinion on the fact that the vice-president of the ASF in charge of its insurance division is being indicted? What message does this situation send to the insurance market?

Answer: We do not comment on actions of the judicial system concerning third parties.

Question: How would you comment on the fact that the prosecutors have searched the offices of "Omniasig" just one day after Peter Hagen criticized the PAID?

Answer: We have faith in the Romanian judicial system and we do not think that there is a connection between the investigation launched against Omniasig and our statements, which represent valid opinions concerning the Romanian insurance market.

Question: Do you think that Omniasig/VIG are victims of the actions of other insurance companies which are members of the PAID?

Answer: There have been various speculations on the subject, but we do not comment on speculation.