The Bulgarian group Eurohold reacted on Thursday to the answers given a day ago by President Klaus Iohannis at the plenary session of the European Parliament regarding the revocation of the Euroins license. “He could have replied ‘I have no comment,’ but instead he continued to blame the company as the culprit, even though the trial had not even started,” the Bulgarian group said.

The Bulgarian group Eurohold reacted on Thursday to the answers and comments of Klaus Iohannis, made a day ago at the plenary session of the European Parliament, to the questions of some MEPs regarding the revocation of the license to operate Euroins Romania.

• “It is very unusual for a country’s president to comment biasedly on a legal standoff between a market regulator and a private company, instead of refraining from any comments that might affect fairness. He could have replied “no comment” but instead continued to incriminate the company even though the trial had not even started.
• We remind you that no court in Romania has yet issued a decision on the legality of the decision of the Romanian regulatory body to revoke the license of Euroins Romania. The process in this case started a few days ago, and the substantive hearing has not yet taken place,” the management of Eurohold states.

So far, according to Eurohold, there has been only one court decision on an appeal by Euroins Insurance Group (EIG) and its branch in Romania, which sought to suspend the Romanian regulator’s decision to revoke Euroins Romania’s license, which subsequently led to the company’s bankruptcy proceedings. The Romanian Financial Supervisory Authority (ASF) revoked Euroins Romania’s license on March 17, 2023.

In early June 2023, the Bucharest Court of First Instance ruled to open bankruptcy proceedings against Euroins Romania only due to the license revocation, refusing to stay the bankruptcy proceedings until the Administrative Court decides whether the license revocation is legal.

The case itself regarding the legality of the act of the Romanian regulatory authority against Euroins Romania started a few days ago in the Administrative Court in Bucharest and is still pending at the first instance, as well as hearings and motions on the merits.

In addition, Eurohold and EIG filed a lawsuit at the European Court of Human Rights and are preparing an arbitration request for more than 500 million euros before an international court in the United States. Both companies have already officially notified the Romanian government of their intention to submit the case to international arbitration in October 2023.

Iohannis in the European Parliament: The judges decided that the decision was correct

Two MEPs from Germany and Ireland raised on Wednesday in the European Parliament during a debate with the President of Romania Klaus Iohannis the question of the bankruptcy of the insurance company Euroins and how the Financial Supervisory Authority (ASF) acted in this case, with a request to the head of state to agree to an independent assessment of the European Commission regarding the situation, reports Agerpres.

• “In 2019, the insurance regulatory body ASF asked Euroins Romania to buy the then bankrupt City Insurance. Only three years later, the ASF suspended the Euroins license in Romania, apparently for dubious reasons. (…)
• Last year, the European Bank for Reconstruction and Development (EBRD) raised questions with the Romanian finance minister about the actions of the ASF and submitted a proposal for a resolution (…), German MEP Gunnar Beck from the Identity and Identity group said on Wednesday. (ID), during the EP plenary debate in Strasbourg.

Beck claimed that the European Insurance and Occupational Pensions Authority (EIOPA) had written a report on Euroins’ business, which he had been unable to see despite repeated attempts.

• “In response to a written question that I asked, the European Commission claims that it has never seen the report. Until I was given access to all the details of the EIOPA report. What are the European Commission and MEPs trying to hide ASF and EIOPA from?”, the member asked rhetorically. ID groups.

He then noted that “following the decision to leave Euroins without a license, the ASF granted a license to Easy Asigurări, a subsidiary of Superbet. “And who is the president of Superbet? One of the brothers of the President of the European Commission, Ursula von der Leyen.”

Euroins’ case was also raised by his colleague from the opposite spectrum of the political bench, Irishwoman Claire Daly of the European United Left/Scandinavian Green Left (GUE/NGL) group in the EP.

She said she knew President Iohannis was aware of the case and that it was “very surprising that the Romanian regulator acted against this company three years after asking it to take over City Insurance”.

• “It is known that both the regulatory body of Bulgaria and the EBRD raised questions about the actions of the specialized body of Romania.
• Both appealed to the European authorities, one of the organizations prepared a report warning of the consequences, they even prepared a proposal for a resolution that would reduce the impact, but nothing happened, and your country risks being sued for 500 million euros (.. .)” , – pointed out the left-wing Irish MEP.

She noted that the case had been brought to the attention of EIOPA, which should have reduced the risk of problems on the ground, but it could not make the prepared report available to the EP members.

• “I am deeply concerned about the security around this case. My question to you, Mr. President, is really simple and in the interests of the citizens of Romania, and not only: will you support us in our call to the European Commission to launch a comprehensive and independent analysis of this case?”, Claire Daly pleaded.

President Klaus Iohannis answered this question at the end of the debate, but as a principled position without commenting on the specific case of Euroins.

• “I heard that the regulator had problems with the company. And, as everywhere in a democracy and the rule of law, if people think that the decision is not very good, they go to the judge.
• This is what happened. The judges recognized the decision as correct.
• This is what I mean by the rule of law. Everyone has the same rights, everyone has the right to a fair trial and everyone has to accept the outcome.” – said Yohannis.

Bankruptcy of Euroins reached the European Court: Bulgarians from EIG challenge the EIOPA report on the situation of the former leader of RCA

Euroins Insurance Group (EIG), part of the Bulgarian group Eurohold, has filed a formal appeal with the Court of Justice of the European Union (CJEU) in connection with the report of the European insurance authority EIOPA regarding the financial problems of the former head of RCA, Euroins Romania. The Bulgarians claim damages caused by the way this report was compiled, issued and presented.

• “The EIOPA report on Euroins Romania’s technical provisions (as of 30 September 2022) was published on 28 March, 11 days after the FSA revoked EIRO’s licence. EIOPA did not simultaneously publish any official document with reference to this report, and no official document on this matter was actually submitted to the EIG.
• This meant not being able to inform myself of the results, defend myself and respond to the allegations in the public space, given that in the following days, fragmented parts of this EIOPA report were leaked to the press to several Romanian publications, which constitutes another violation of the rules in the field.
• In addition, the same report was presented by the Bucharest Court of Appeal of the ASF, which further limited EIG’s ability to provide the best legal protection for the interests of its insured clients and shareholders.
• The insurance group subsequently challenged the report at the Board of Appeal (BoA) of the European Supervisory Authorities (ESA), arguing that it significantly undermined the company’s right to a defence, failed to comply with the principles of the rule of EU law and ignored the initial request by EIRO’s Impartial and Independent Reserve Review Panel.
• On June 8, the ESA Board of Directors decided not to consider EIG’s appeal on the merits.” This is stated in the press release sent last summer by the Eurohold group.

The ASF told the government that the EIOPA report confirmed the financial problems at Euroins

We remind you that the Financial Supervisory Authority (FSA) by its decision No. 262/17.03.2023 on revoking the license to operate Euroins Romania, at the same time noting the state of insolvency of the company, subject to the presence of a solvency capital deficit (SCR) in the amount of 2.2 billion lei and a minimum deficit capital (MCR) 1.75 billion lei.

On April 5, 2023, ASF management was summoned to the government to explain the RCA price cap in the context of the new major bankruptcy in the RCA market in Euroins, at which time Valentin Ionescu, General Director of Insurance at ASF stated that EIOPA had carried out its own analysis and confirmed the decision, adopted in the case of Euroins.

• “EIOPA confirmed the analysis of ASF and the decision of ASF in Euroins. We and the Bulgarian authorities have also received this report, but we cannot make it public because we do not have the consent of the European authority. I can confirm what appeared in the press. EIOPA’s adjustments for technical provisions and reinsurance are the main adjustments we’ve had.
• The main adjustments relate to best estimates, gross technical provisions and reinsurance allowances. The need for SCR is public, it is in the solution somewhere at the level of 2.2 billion lei, i.e. 440 million euros. EIOPA comes and confirms our amount, actually there is something higher in EIOPA’s adjustment.”, the ASF director said at the time.

Read: Bankruptcy of Euroins reached the European Court: Bulgarians from EIG challenge the EIOPA report on the situation of the former leader of RCA