EBRD lobbies for amending regulations after entering biggest Romanian insurer
Euroins Romania, the biggest insurer after the collapse of market leader City, will benefit from a EUR 42 mln capital injection from the European Bank for Reconstruction and Development (EBRD) and its Bulgarian owner.
In a joint statement of the EBRD and Euroins, they announce "advanced discussions [with] ASF on the topic of amending the legislation for the insurance industry in Romania."
Mark Davis, EBRD Regional Director for Romania and Bulgaria, says that "the EBRD is working with market regulator ASF to develop new regulations for managing motor claims. Its goal is to help create a fairer system for all parties involved, including customers, workshops and insurance companies while fostering the interest of larger global insurers and attracting capital to the sector."
Euroins Insurance Group (EIG) confirmed that it signed an agreement to sell the EBRD a minority stake.
The EBRD is investing EUR 30 mln through a capital increase, while Eurohold, the insurance group's parent company, is providing a further equity injection of up to EUR 12 mln, according to the Bulgarian group's statement. The funds will be used to develop and grow the largest insurance entity within the group, Euroins Romania Asigurare Reasigurare.
"This EBRD investment will play a key role in stabilizing the insurance sector while providing comfort to customers, regulators and suppliers," said Anca Ioana Ionescu, EBRD Director for Bulgaria.
"The investment comes at an important moment for EIG's largest company - Euroins Romania. It marks a strategic milestone of the capitalization of our Romanian subsidiary in which EIG has invested over RON 300 mln (EUR 60 mln) in the past 12 months," said Kiril Boshov, EIG's chief executive officer and chairman of Еurohold's management board.
(Photo source: EBRD)