The Bulgarian group Eurohold, the owner of Euroins, reacted on Friday to PSD leader Marcel Cholaka’s statements about “the possibility of a new RCA bankruptcy”, as well as to the concerns expressed by the government, which is awaiting an explanation from the ASF, in particular on the solvency of Euroins, stressing that it has recently consolidated its financial position beyond the requirements of the law, and the risks transferred to reinsurance will also be reviewed by EIOPA – the European insurance authority.

What the Bulgarian group says about the recent financial consolidation of Euroins Romania

Bulgarian group Eurohold, owner of Euroins Insurance Group, announced on Friday “in light of recent claims and speculation in the public space that it has recently consolidated the financial position of Euroins Romania, a division of EIG, which now has an SCR ratio (Solvency Requirement of capital) 160% and MCR (minimum capital requirement) 300%”.

• “In 2022, Euroins Romania paid compensation for 160,000 files of damage resulting from accidents that occurred in Romania and abroad, amounting to more than 1.6 billion lei.
• Euroins Romania has direct payment agreements with more than 1000 auto repair shops in Romania, with an average payment period of 5 to 10 days, which is much faster than the legal obligation to pay within 30 days.”, This is stated in the press release of Eurohold.

The group also notes that “almost 80% of the lawsuits involving Euroins Romania are against a very small number of services and their customers, and all of them have as the subject of litigation cost repair operations. more than 3 times higher than average market prices”.

• “We express our concern and surprise at the danger created in recent weeks by various situations and elements that are discussed in the public space and which negatively affect not only the Group and our subsidiary in Romania, but also the entire insurance industry in Romania.
• In a European state governed by national and European laws, it is unfortunate that one of the key players that intends to contribute to the stability of the insurance market, with such financial figures, has become the object of speculation due to the shortcomings created by only a few people who, by their practice influenced and continue to influence everyone, especially citizens.
• We are confident that the Romanian public authorities are able to recognize and analyze all the actions taken by our company since entering the Romanian market in 2007 to strengthen and consolidate Euroins,” said Kyril Boshov, President of the Board of Directors of Eurohold, a shareholder of Euroins Romania.

The group also reveals that last year Euroins Romania paid more than 300 million lei in taxes and contributions to various authorities and institutions, including almost 70 million lei in funding (special contribution) provided by the FGA to cover losses caused by the bankruptcy of City Insurance .

Reinsured risk transferred to EIG Re – more than 300 million euros / EIOPA conducts its own audit

The Bulgarian group recalls that Euroins Romania recently signed a new reinsurance agreement with EIG Re EAD, a reinsurer with 20 years of experience, part of the EIG Group, which is “a general arrangement for all major insurance groups, among which some also operate in Romanian market.”

The group released new details on the reinsurance contract and announced that the reinsurance business will also be audited by EIOPA – the European Insurance Authority.

• “EIG RE is also part of the Eurohold group, which has an annual revenue of over €3 billion and assets of €2 billion. The total value of the reinsured risk transferred to EIG Re is 1.5 billion lei (over 300 million euros).
• Regarding the ongoing audits of Euroins Romania’s reinsurance business, the European Insurance and Occupational Pensions Authority (EIOPA) is conducting its own audit and the shareholders (EBRD and Eurohold) engaged one of the largest actuarial firms in the world to conduct an independent audit. reinsurance business.”, – notes Eurohold.

Eurohold again accuses insurance experts of trying to destabilize the insurance market

The Bulgarian group also believes that “in the current general context, as we all operate in a mature market, it would be prudent for any insurance company to refrain from increasing prices in the absence of good rational reasons to try to better protect Romanian consumers.”

Last but not least, the management of Eurohold states that “it is concerned about the actions of several experts in the insurance sector and their competence and professionalism. The management of the Group hopes that such experts, who try to destabilize the Romanian insurance market through personal interpretations, will face the rigors of the law.”

RCA increase scandal: Prime Minister awaits decisions from ASF / Contre between Cholaku and Sitsu

RCA’s new reference tariffs, which are higher and more than 41% higher than last year, have caused a wave of discontent at Government level, and Prime Minister Nicolae Chuke is now awaiting an explanation from Niko Markou, president of the ASF, including about the financial condition of “Euroins”.leader RCA with more than 2.5 million auto insurance contracts, government sources said on Thursday.

Official government sources said on Thursday that Prime Minister Nicolae Chuke discussed some time ago with Niku Marku, president of the Financial Supervisory Authority (ASF), who informed him that there is a problem with the leader of the RCA, Euroins.

• “There are two options: either bankruptcy or recapitalization,” government sources said on Thursday.

The ASF has launched a wide-ranging solvency review process for Euroins, and the Government expects the completion of this review and measures that do not affect the public, as has occurred following recent major insurance bankruptcies, most recently City Insurance.

A day ago, the president of the Chamber of Deputies, PSD leader Marcel Čolaku, said about the strengthening of the RCA policy that bankruptcy may have been declared and that he firmly believes that the government will intervene, as it did once before, according to News.ro.

• “You know very well that you can be declared bankrupt. I firmly believe that the government will intervene, as it has already done in the past.” said Marcel Čolak, quoted by News.ro.

Regarding the hearing of the ASF leadership, Cholaku said that the ASF vice-president requested an audience with him and the ASF president requested a meeting with Prime Minister Nicolae Chuke.

When asked if he had information about a possible bankruptcy in the RCA market, Marcel Čolaku said that these decisions are made by the ASF and the government.

• “There are certain signals on the market that such an opportunity exists. There was already such a precedent. What I can answer you is from the precedent that was there, where the state intervened. I firmly believe that ASF together with the Romanian government will make the best decision. If it is a decision through GEO, it will go to the parliament,” said Marcel Čolaku.

Former Prime Minister Florin Citsu reacted on Thursday to these statements, saying that PSD leader Marcel Čolacu should leave immediately and that “he should urgently tell Romanians which company he meant when he said that Romania’s ‘declared bankruptcy’ is coming in the insurance market”, writes News .ro.

• “If he has the information, he cannot allow Romanians to buy insurance policies from a company that he knows will go bankrupt. Such statements by an official with access to confidential information would have been immediately followed by resignation in any civilized country,” said the NLP senator.

ASF is considering RCA price caps

After the scandal caused by RCA’s rate hikes, The ASF announced on Thursday evening that it was considering capping RCA prices.

A 6-month price cap was also announced last February by PSD Finance Minister Adrian Cachiu following a significant increase in RCA prices following the bankruptcy of City Insurance. However, later the project was abandoned.

Adrian Cachiu announced on Facebook decision to cap RCA prices for 6 months. The draft of the Government’s Resolution was published on the same day, February 18, at a public hearing, causing controversy, complaints from carriers and insurers, brokers, and all.