Sofia-headquartered insurance company Eurohold asked on Tuesday that its subsidiary Euroins Romania be given back its license after Romania's Financial Supervisory Authority (ASF) delicensed it and decided to launch a bankruptcy procedure against it late last week.
At a news conference in Bucharest, Eurohold warned that the loss of the license of its subsidiary will inflict a EUR 1 billion detriment on the Romanian economy. ASF's decision cancels all reinsurance contracts of the Romanian company and will have serious financial consequences for the insured persons, the parent company argued. A return of the license to Euroins Romania will allow Eurohold to continue to support it, the Bulgarian company said.
ASF decided to appoint the Policyholders Guarantee Fund (FGA) as interim administrator of Euroins Romania.
Euroins Romania is part of the Euroins Insurance Group (EIG), which is one of the largest insurance groups in the region and is owned by Eurohold Bulgaria. Eurohold Bulgaria is a leading energy and financial group operating in Central, Eastern and Southeastern Europe. It is listed on the Bulgarian and Warsaw stock exchanges. In a Bulgarian National Television interview in February 2023, Eurohold Bulgaria Supervisory Board Chair Asen Christov said that they are the largest holding in terms of revenues and volumes in Bulgaria, and operate in 12 countries with a turnover of over EUR 2.5 billion.
In the February interview, Christov complained of an organized attack against Euroins Romania involving senior and mid-level management employees of ASF's Insurance Department, as well as people who caused the crisis with the Romanian company City Insurance. "Over more than three years, the Vice President of the Financial Supervisory Authority, Cristian Rosu, together with his director Valentin Ionescu and several other people, have tried several times to force our company to merge with the bankrupt Romanian company City," Christov said.
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