According to Financial Intelligence, citing sources familiar with this report, the European Insurance and Occupational Pensions Authority has concluded that Euroins Romania needs EUR 500 mln in order to meet its Solvency Capital Requirement.
The Board of the Financial Supervisory Authority, (ASF), decided on March 17 to withdraw the operating license of Euroins Romania. They noted elements that indicated the insolvency of the company. The Board decided to also bring the bankruptcy of the insurer before the court.
ASF stated that on June 30th, 2022 the company lacked sufficient funds to cover SCR. This situation was still present on September 30th, 2022. To restore the SCR funds of RON 2,19 bln were required (EUR 400 mln), out which RON 1,75 bln was enough to meet the minimal capital requirement.
The Authority has fined Euroins RON 16 mln ($3.2 mln) in total for 17 control actions between February 2020 and January 2030.
EBRD has no issue with Romanian subsidiary Euroins, a Bulgarian insurance company
In a press release dated April 5, the European Bank for Reconstruction and Development, a shareholder in the Euroins Group, claimed that an independent audit had failed to confirm ASF’s claims about the capital deficit found at the Romanian branch of the Bulgarian Insurance Company.
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