Euroins bankruptcy: The Bulgarian group appeals the ASF decision in court

Euroins Insurance Group (EIG) announced on Tuesday that it has started the legal procedure to suspend and cancel the Financial Supervision Authority (ASF) decision of March 17, 2023 revoking the operating license of Euroins Romania.

In addition, Eurohold and EBRD, the shareholders of EIG, specified what proposal they submitted to the Romanian authorities to solve the crisis in the RCA market.

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

“Eurohold and EBRD, shareholders of EIG, have already submitted to the Government, Parliament, ASF and FGA a concrete proposal to solve the crisis on the RCA market, triggered by the closure of one of the key companies and affecting 2.7 million RCA policyholders. The proposal aims to avoid the FGA spending the money of the Romanian state and taxpayers to pay RCA damages.

The proposal provides for the transfer of the Euroins Romania portfolio to EIG Re, through a transfer agreement by which EIG Re undertakes to cover current and future damages and specifies that Euroins AD, the Bulgarian subsidiary of the group and one of the largest divisions in the holding, will initially operated in Romania under the Freedom of Services (FoS) regime, serving Romanian customers. The shareholders undertake to provide the necessary capital contribution for the execution of the Proposal,” the group’s press release states.

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

“In the past 10 years, starting from 2013 inclusive, Euroins Romania has paid almost 650 million lei to the state budget, representing salary taxes and other taxes, salary contributions and other similar ones, plus almost 125 million lei representing the special contribution to ASF, which was increased at the beginning of 2022 from 1% to 2.5%, and then to 4%. As a direct consequence of this increase, Euroins Romania paid almost 67 million lei to ASF in 2022 alone.Also, in the last 10 years, Euroins Romania has paid Romanian brokers almost 2.4 billion lei representing commissions, of which over half a billion lei in 2022 alone,” the statement also says.

ASFbankruptcybulgariancourtEIGEuroinsEuroins Insurance GroupFinancial Supervision Authorityinsurancelegal actionlicenseRCA
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