Euroins Insurance Group (EIG) announced on Tuesday that it has initiated legal proceedings to suspend and annul the ASF’s March 17, 2023 decision to revoke the operating license of Euroins Romania. In addition, the shareholders of EIG “Eurohold” and the EBRD clarified what proposal they made to the Romanian authorities to solve the crisis on the RCA market.

The legal action, initiated by a request to the Bucharest Court of Appeal, was one of the steps taken by the shareholders of Euroins Romania to overturn the ASF decision.

What solution did Eurohold and the EBRD offer to solve the RKA crisis

• “Furthermore, Eurohold and EBRD, the shareholders of EIG, have already submitted a specific proposal to the Government, Parliament, ASF and FGA to resolve the crisis in the RCA market, triggered by the closure of one of the key companies and affecting 2.7 million insured RCAs. The proposal aims to ensure that the FGA does not waste Romanian state and taxpayer money to compensate RCA.
• The proposal involves the transfer of the Euroins Romania portfolio to EIG Re through a transfer agreement, under which EIG Re undertakes to indemnify current and future losses and specifies that Euroins AD, the Bulgarian subsidiary of the group and one of the largest units in the holding company, will initially operate in Romania under the Freedom of Services (FoS) regime, serving Romanian customers. The shareholders undertake to provide the capital contribution necessary for the implementation of the Offer.”, the group said in a statement.

Bulgarians appeal to the ASF to cancel the decision against Euroins

The Bulgarian group claims that by revoking Euroins Romania’s license, “ASF canceled an economic ecosystem that supported thousands of jobs across the country, directly or indirectly, and damaged the state budget by hundreds of millions of lei, representing tax revenues, social security contributions . and other taxes and fees”.

• “Euroins Insurance Group is taking steps to have the ASF overturn this decision, given that it has affected a company owned and supported by the strong EBRD financial group and in a strong financial position, with all due taxes paid on time.
• Thus, in the last 10 years, starting in 2013 and inclusive, Euroins Romania has paid to the state budget almost 650 million lei, which are taxes on wages and other taxes, contributions from wages and the like, plus almost 125 million lei, representing a special contribution to the ASF, which was raised from 1% to 2.5% in early 2022 and then to 4%. As a direct consequence of this increase, in 2022 alone, Euroins Romania paid almost 67 million lei to ASF.
• In addition, over the past 10 years, Euroins Romania has paid almost 2.4 billion lei in commissions to Romanian brokers, of which more than half a billion lei in 2022 alone.” this is also stated in the message.

It is updated