Allianz-Tiriac Pensii Private Cuts Share Capital 11.7 Times To 30 Mio RON

Allianz-Tiriac Pensii Private (Allianz-Tiriac Private Pensions), the second largest player on the Pillar II tier if the private pension system, has reduced its share capital 11.7 times to 29.99 million RON, after the management firm was forced to book all start-up investments as losses last year. Allianz-Tiriac Pensii Private had a share capital of 350 million RON before this operation.

The share capital has been reduced by cutting the face value of the shares from 100 RON to 8.5714 RON, following a decision of the General Meeting dated 7 May.

Allianz-Tiriac Pensii Private CEO Crinu Adanut in end-April explained that some of the management firms would lower their share capital by the volume of the accounting losses incurred in order to achieve compliance with Law 31/1990, which regulated a certain ratio between equity and share capital.

After the reduction of the share capital, Allianz-Tiriac Asigurari SA holds 99.9999 per cent, whereas Vesanio Trading Ltd. holds five shares.

"We have discussed the only item on the agenda, that is, the reduction of the share capital of Allianz-Tiriac Pensii Private SA, the pension fund management firm, following the financial losses incurred in the fiscal years 2007 and 2008," reads a press release published in the Official Journal of Romania.

Allianz-Tiriac Pensii Private concluded 2008 with losses of 392 million RON (over 100 million EUR).

Allianz-Tiriac Pensii Private is present on the optional private pensions market Pillar III with two funds, AZT Moderato and AZT Vivace, which reported aggregated net assets of some 41 million RON at the end of September.