Euroins Insurance Group (EIG), part of energy and insurance conglomerate Eurohold Bulgaria, launched legal proceedings with a view to annulling a decision by the Romanian financial regulator, ASF, to revoke the operating licence of Euroins Romania, the Bulgarian group said, according to See News.
EIG has filed an application to open the legal procedure at the Court of Appeal of Bucharest, Eurohold said in a press release on Tuesday.
As part of counteractive measures in response to Romania’s ASF withdrawing the licence of Euroins Romania in March, Eurohold and EIG minority shareholder, the European Bank for Reconstruction and Development (EBRD), have also submitted a proposal for resolution of the matter to the Romanian government and market authorities ASF and the Policyholders Guarantee Fund, FGA.
“The proposition provides the transfer of Euroins Romania’s portfolio to EIG Re, through an agreement of transfer under which EIG Re commits itself to cover the current and future damage payments,” said Eurohold.
In addition, Euroins Insurance Company, the Bulgarian subsidiary of the group and one of the holding’s largest units, will operate in Romania with local customers under the freedom of services (FoS) regime.
Eurohold’s shareholders have committed to provide the required capital backing to carry out the measures in the proposal, the group noted.
Last week, EBRD said that, together with Bulgaria-based EIG, it was trying to work out a resolution to the insurance market crisis in Romania that would not bear additional costs for policy holders or tax-payers in the country.
Euroins Romania Asigurare Reasigurare SA is among the biggest insurers in SEE.