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    The Financial Supervisory Authority withdraws Euroins Romania’s operating licence and finds the company insolvent

The Financial Supervisory Authority withdraws Euroins Romania’s operating licence and finds the company insolvent

Bucharest, 17 March 2023 - The Council of the Financial Supervisory Authority (ASF) has decided to withdraw the operating licence of Euroins Romania, noting indications that the company is in a state of insolvency. The Council also decided that ASF should file a request for the opening of bankruptcy proceedings and appoint the Policyholder Guarantee Fund (FGA) as interim administrator of the company, with the task of ensuring the administration and management of the insurer’s business and taking the necessary measures to preserve its assets. The duties of the company’s management are suspended by operation of law. The mandate of FGA shall cease upon the appointment of the liquidator.

On 30.06.2022 the company had no eligible funds to cover the SCR, a situation that continues on 30.09.2022. To restore the Solvency Capital Requirement (SCR), funds amounting to RON 2.19 billion are needed, and funds amounting to RON 1.75 billion are needed to cover the MCR. The decision to withdraw the licence was taken as the situation of Euroins Romania does not make it reliable to apply a settlement procedure.

The decision of the ASF Council is based on an extensive analysis of the situation of Euroins Romania. In this regard, we note that, since 2020, Euroins has been subject to intense control actions which resulted in highlighting the real situation of the company. Between February 2020 and January 2023, the Authority imposed 26 sanctions on Euroins, resulting in total fines of over RON 16 million, resulting from 17 control actions. All the sanctions imposed by ASF on Euroins Romania have been confirmed, on the merits or definitively, by the courts to which the company appealed to challenge the measures.

For complete documentation of the results of the supervision and control process, we provide a Summary of the decisions taken by the Council of the Financial Supervisory Authority in relation to Euroins Romania.

The history of control actions and details of the irregularities identified at Euroins Romania can also be found in the summary attached to this press release, HERE (in Romanian). In the same material, you can also find the reasons why ASF decided not to approve the transfer of assets to EIG Re, a company registered in Bulgaria.