Temporary external management appointed at Romania’s fourth biggest insurer

The Insurance Guarantee Fund (FGA) has been appointed temporary manager to Euroins, the fourth largest insurance company in Romania, for a limited period of time until a new Board of Directors gets the necessary permits.

According to a statement of the Financial Supervisory Authority (ASF), the FGA will oversee the current procedures and operations carried out by the company during this period.

“ASF stresses that the appointment of a temporary administrator does not represent the establishment of the special administration procedure. Special administration is a measure that is usually applied in case of deterioration of the financial situation of a company. The authority rejects any speculation that can be made in this sense in the case of Euroins,” the regulator’s press release says.

The authority also points out that Euroins meets the prudential indicators, both in terms of the minimum capital requirements and in terms of the solvency capital requirements.

One day earlier, on February 12, ASF decided to sanction Euroins with a fine of RON 500,000 (EUR 105,000) for repeated delays in the payment of compensations related to mandatory car insurance (RCA) policies. Euroins, which holds about a third of the RCA segment in Romania, was previously fined twice by the ASF for the same reason.

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