​The Financial Supervisory Authority (ASF) was not officially notified of Euroins’ intention to transfer most of RCA’s risks from Romania to EIG RE, the group’s reinsurer in Bulgaria, so it requested the documents to analyze this contract, officials of the authority told HotNews.ro.

We remind you that, being under the full control of the ASF over the company’s solvency, on February 17, 2023, Euroins announced the conclusion of a new contract with EIG RE – the reinsurer of Euroins Insurance Group (EIG).

Euroins says this will resolve the problems caused by the ASF, but it will continue to defend the validity of previous reinsurance contracts challenged by the authority.

The new reinsurance contract with EIG Re assumes 87% of RCA Euroins Romania’s risks

New information about this reinsurance contract were presented on Monday, February 27, by the author Kyrylo Boshov, head of Euroins Insurance Group (EIG).

According to him, the reinsurance contract signed with EIG RE covers 87% of RCA Euroins Romania’s relevant risks, while the Romanian insurer currently only covers 3% of RCA’s risks. 10% are other taxes, such as contributions to the Guarantee Fund (FGA).

In addition, Kyryll Boshov noted that the percentage of 87% of risks does not remain entirely with EIG RE, which is the reinsurer of the Euroins group, but is transferred in a significant proportion to other reinsurers in Germany, the Netherlands and Spain.

A Bulgarian official said he could not name the reinsurers because of certain confidentiality clauses.

The head of the EIG group says that the accounts will have 100 million lei / ASF has a different opinion

The differences between Euroins and ASF do not end there.

Kiril Bosov, head of Euroins Insurance Group (EIG), also said on Monday that Euroins Romania has 410 million lei of its own funds and that it is in the process of increasing its capital by another 100 million lei, which it is still waiting for. for the approval of the ASF.

Answering the question of HotNews.ro, what is the status of this capital increase and why it was not approved by the ASF, Kirill Boshov said that the procedure was initiated on his own initiative in the summer of last year, that the money is in the accounts and that according to Euroins calculations, the further capital increase is all not needed yet.

• “The capital increase started last summer. This is a negotiation process, we have already paid the money, the money is in the account. ASF will approve when it decides.
• The company is working perfectly, we are absolutely confident in the financial stability of the company and we want to be sure that no one will try to do something against this company, because we do not see any reason for this”, – Kyrylo. This was announced on Monday by the CEO of Euroins Insurance Group, Boshov.

On the other hand, The Financial Supervisory Authority (ASF), chaired by Nico Markouhas a different opinion about these funds.

• “The capital increase in question is a two-stage process. For the first stage, which consists of a subordinated loan, the last documents were submitted at the end of January and the procedure is being completed.
• For the second stage, which would complete the capital increase to an amount close to the announced amountOffice of Financial Supervision I have not yet received any official request from Euroins.
• ASF strictly adheres to all legal steps also in the case of capital increase procedures, which involve not only the necessary checks of documents provided by the company, but also compliance with the strict rules established by European law.” ASF representatives also informed HotNews.ro.

The measures announced by Euroins regarding the new reinsurance contract come in the context of the company being in full control of the Financial Supervisory Authority (ASF) over solvency and liquidity indicators, information first published by HotNews.ro on February 6, 2023.

There is also a criminal case against the insurance company in the prosecutor’s office, which was first reported by the newspaper Libertatea.

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

On the other hand, the Bulgarian group Eurohold, which controls Euroins Insurance Group (EIG) Eurohold, claims a coordinated attack on Euroins Romania, in which ASF employees may have been involved, with the aim of seizing the insurer’s assets.

Read more:

• Euroins appeals in court against the latest fine for ASF / Kyryll Boshov, EIG: The fine applied to 72 files, but last year we paid 160,000 files
• Under full control of ASF, Euroins announces the transfer of a significant part of its risks to reinsurer EIG Re