​The company has no problems covering debts in terms of short-term payments, Eurohold president Assen Hristov said at a press conference on Monday.

*Please note that the chapter of “Eurohold” speaks in Bulgarian, and the text is written according to the official translation.

“What was the situation on March 17, 2023, when the license was revoked and the company was declared insolvent? There were 40 million lei in accounts and 70 million in receivables, that is to be collected from brokers,” he said.

According to him, the daily expenses of the company amount to 5.5 million lei for the payment of damages. The company has enough funds to cover expenses for the next 15-20 days.

He also noted that on March 17, before the decision to revoke the license, it happened on the basis of Article 110, that is, there is a non-compliance with this legislation.

“I mention this because in these articles there is a provision that the license is revoked. This article was not in use when the license was revoked. Before I begin, I would like to mention what Danielle Apostol and Cristia Rosa mentioned. They note that both the revocation of the license and the bankruptcy procedure are not based on any economic reasons,” he said.

Other statements:

• “Mr. Rosu notes that the company has paid all its financial obligations and that it is meeting its payments.”

• The reinsurance contract is accepted by us and the reinsurers on the basis that these are actual contracts and that payments have already been made.

• The ASF team has decided that it has the right not to recognize this treaty.

• The reinsurance contracts were twice reviewed by the ASF and accepted without findings and/or adjustments (in July 2020 and September 2021).

• In July 2020, the ASF was inspected, there were no comments. In September 2021, the AFS conducted an inspection of technical reserves and even if it had certain comments, it did not object to the amounts. He recognized these contracts.

• The reinsurance contracts were audited during the BST conducted by PwC (in 2021).

• These contracts were recognized, the company had no problems. There is no logic in calling them unacceptable contracts.

• This is not the first time we have a dispute with the ASF team: not with the ASF body, with the ASF team. Since we did not know exactly what the reasons were for this report, we decided to replace these contracts with a new contract that would meet all the requirements of the regulatory body.

• In order to fulfill the requirements of the ASF, Euroins Romania signed a contract with EIG Re, which fully complies with them. To meet prepayment requirements and increase coverage, additional assets were transferred to EIG Re.

• Contract placement is an internationally recognized practice that facilitates market placement

• The conclusion of an intragroup reinsurance contract with EIG Re complies with internationally recognized practice and meets all ASF requirements.
• All obligations of Euroins were paid by March 17. After a month of silence on the non-recognition of reinsurance contracts, the ASF has decided that it has some reservations about the reinsurance contract concluded with EIG Re.
• The remaining assets of the company amount to 300 million lei. We have demands to collect 120 million lei from the guarantee fund. We have almost 30 million properties. We have about 30 million to collect in the next 1-2 months and various other receivables from intermediaries.
• Euroins Romania is perfectly covered. The reinsurance contract is effective from January 1. The company has enough assets to continue making payments for the next 3 weeks, even if it has no revenue.
• ASF decided not to recognize this treaty, or rather not to apply it. After he decides that he will not enforce this contract, he decides to withdraw the license of Euroins Romania, announces that he will have to declare bankruptcy, and suddenly announces to the Guarantee Fund the termination of this reinsurance contract, by which he informs us that this contract exists. ASF creates a vicious circle between cause and effect, which can be interpreted as an illegal act with intent. I don’t think the professionals don’t know exactly what a vicious circle means and act like 15th century philosophers.
• Which one is the first? The chicken or the egg? Lucky for us, there are answers here. The answer can be found in the text of Article 32 of the European Directive (solvency No. This article provides that the state cannot refuse a reinsurance contract for reasons related to financial stability.
• ASF has no right to object to the Contract. Only FSC has these rights.

• On March 14, 2023, the Bulgarian authorities replied to the ASF that they had implemented and that the solvency was over 100%. He said he checked the contract and it was valid.

• ASF’s decision to revoke the license directly leads to non-coverage by reinsurers and the possibility of coverage by the guarantee fund. This is not because good contracts have not been concluded, but because every international contract has such a typical clause.

• The non-recognition of the contract directly affected FGA in the amount of 2 billion lei.

• The decision of the ASF leads to the obligation of the Romanians to pay 500 million euros.

• The license was revoked without reason. We, as shareholders, are suing for an investment of 270 million euros. We are also suing them for €230 million for various damages.

• The total loss for Romanian taxpayers is about 1 billion euros. FGA: losses of 400 million euros.

• The ASF decision leads to a crisis in the insurance market, an artificially induced crisis. Until yesterday, the companies were paying and prices remained stable, although they are said to be high. This decision will lead to higher prices.
• Reinsurers will demand significantly higher prices for concluding reinsurance contracts. What will be the reputation of the state?

The head of Eurohold often mentioned the names of ASF vice-president Christian Roche, Valentin Ionescu (implying that they are responsible for this situation) and ASF press secretary Daniel Apostol (in connection with some of his statements in the press)

The news is updated