With ASF in full control of the company’s solvency, the leader of RCA Euroins announced on Friday evening that it had entered into a new contract with the group’s reinsurer, EIG Re, to which it had transferred a significant portion of the risks. Euroins says this would solve the problems caused by the ASF, but it would continue to protect the validity of previous reinsurance contracts challenged by the authority.

Eurohold Group states that it signed this contract to protect itself from the arbitrariness of ASF

The Bulgarian group Eurohold said on Friday that it does not agree with the actions of the ASF officials, but decided to provide additional guarantees of the financial stability of the company Euroins in Romania.

Below is the main information from the Eurohold press release:

• Euroins Romania has signed a quota share reinsurance agreement with EIG Re EAD, the reinsurer of Euroins Insurance Group AD (EIG).
• This is due to the ongoing disputes with the officials of the regulator of the insurance market of Romania regarding the existing reinsurance contracts of the local division of Euroins.
• The new reinsurance contract was consulted with international experts and lawyers. Eurohold and EIG Re have duly informed the competent public authorities and the Bulgarian Financial Supervisory Commission about this new measure, and Euroins Romania is the relevant authority in Romania.
• The agreement with EIG Re is concluded in accordance with all European requirements and covers the entire cost of Euroins Romania’s losses.
• The new reinsurance contract also ensures that a significant part of the risk assumed by Euroins Romania is transferred outside the company.
• This decision is associated with higher costs for the company, but is widely established and supported in global practice.
• This measure solves all the problems raised by the regulator of the insurance market in Romania, which continue to be the subject of discussions and disputes.
• Hiring the group’s reinsurer is another guarantee of the management’s confidence in the good financial condition of Euroins Romania and in the correctness of the company’s theses presented to the competent regulatory authorities.
• An additional guarantee for Euroins Romania and EIG Re is the fact that a significant part of the risks accepted by the new reinsurer are retroceded to the leading European reinsurers. Thus, the interests of insured persons are protected to an even greater extent, and this guarantees an even greater level of stability.
• The recently adopted measures provide even more coverage of Euroins Romania’s Minimum Capital Requirements (MCR) and Solvency Requirements (SCR), two key indicators that determine whether an insurer is sound and solvent.
• The management of Eurohold and EIG, as well as the team of international experts consulted by the two companies, are convinced of the correctness of the previous actions of the management of Euroins Romania and have no doubt that the existing reinsurance contracts fully cover the accepted risks. by the company
• For this reason and regardless of the new quota share reinsurance contract, efforts to protect the validity of previous reinsurance contracts challenged by the insurance market regulatory authority in Romania will continue.
• There is also a request for an independent international audit of the situation of Euroins Romania before and after these additional measures.

The management of Eurohold also expresses in the press release its “gratitude for the support provided by all state authorities and the Bulgarian Financial Supervisory Commission”.

Criminal complaint and control for ASF ongoing against leader of RCA / Euroins, fined more than 16 million lei in the period 2020-2023

The measures announced now by Euroins are carried out under the following conditions the company is under the full control of the Financial Supervisory Authority (ASF) on indicators of solvency and liquidity, information first published by HotNews.ro on February 6, 2023.

There is also a criminal case in the prosecutor’s office against the insurance company, as originally reported Libertatea newspaper.

ASF sent HotNews.ro a list of all fines applied to Euroins in the period 2020-2023, which exceed the value of 16 million lei, as well as the detailed reasons for these sanctions.

• WHAT PENALTIES EUROINS RECEIVED IN 2020-2023

If the last fine of more than 300,000 lei, applied last month, was related to the late payment of compensations, then the fines from November and September 2022 relate to the improper establishment of technical reserves, as well as reports that would have been incomplete in the period from February to June 2022 regarding disputes regarding the situation pending before the courts.

With regard to the complaint submitted in February 2022 to the General Prosecutor’s Office, representatives of the ASF stated that they understand not to comment on aspects that are the subject of criminal investigations or cases pending in institutions/bodies or specialized state bodies.

The Prosecutor General’s Office confirmed to HotNews.ro that according to the statement about ASF, criminal proceedings were opened after checking in “Euroins”, without giving other details about his condition.

Eurohold declares a coordinated attack on Euroins Romania, in which ASF employees may have been involved / Goal: seizure of the insurer’s assets

Later, on February 8, 2023the Bulgarian group Eurohold announced that it had warned all government authorities and international institutions “about a coordinated attack on Euroins Romania, which may have involved several senior and mid-level employees from the management of the Financial Supervisory Authority (ASF), as well as people involved in the City Insurance crisis .

What does the Eurhold group mean:

• “The attack on Euroins Romania may have involved several high- and mid-level employees from the management of the insurance department of the financial supervisory and regulatory body in Romania – the Financial Supervisory Authority (ASF), as well as people involved in City Insurance. crisis.
• They carry out these actions, endangering the financial stability of the company, the insurance sector as a whole and the economic stability of Romania. In addition, the actions of some officials of the ASF insurance department jeopardize the company’s good relationship with ASF as an institution and with its senior management.
• Eurohold has already informed a number of competent state and international bodies and institutions about these actions, which are taking the necessary measures.
• The information sent by the company to the competent state and international institutions describes all the intended actions, the actions of the group against Euroins Romania and the potential goal of the campaign, which could be to quickly seize the assets of the insurer, causing a liquidity crisis in the sector with significant consequences.
• This financial destabilization could also affect activity in Bulgaria and have a negative impact on the two countries’ Schengen membership, as well as Bulgaria’s entry into the Eurozone, despite excellent bilateral relations between the two countries.
• The attack on Euroins Romania intensified in the last two weeks, when a large-scale negative campaign was organized through the media, some politicians and some officials of the ASF insurance department.
• This includes actions and measures that grossly violate not only Bulgarian, but also European law. The shareholders of the holding believe that there is a deliberate campaign aimed at destabilizing the financial and insurance market of Romania, as well as the company itself as a leader in this market. “Eurohold” also warned the European Insurance and Occupational Pensions Authority (EIOPA) about these actions, as well as other European authorities. This is stated in the statement of the Bulgarian group.

The group also asks the representatives of the competent public authorities “to ensure a transparent, impartial and internationally recognized audit of the process carried out by some members of the ASF insurance department team, which could otherwise lead to a liquidity crisis and financial instability and general policy”.

VIEW EUROHOLD’S COMMUNICATION HERE.