Romanian insurer Euroins, one of the biggest players on the local market and part of the regional group Euroins Insurance Group, has consolidated its capital by over RON 126 mln (EUR 26 mln) with two successive capital increases, the group announced.

With these two capital increases, Euroins Romania significantly strengthened its capital position in line with its strategy to decrease exposure in the mandatory car insurance segment (RCA) and diversify its portfolio, the company said in a press release.

The company says that its current financial situation is in line with the goals.

The first capital increase, worth RON 50 mln, was carried out on December 2.

The company didn't disclose the source of the funds; hence, they most likely came from the parent group.

A day later, on December 3, the Extraordinary General Meeting of Shareholders of Euroins Romania approved and carried out the conversion of two subordinates loans amounting to RON 76 mln.

The two subordinated loans were granted in June and August to Euroins Romania by the parent company Euroins Insurance Group.

Euroins recorded a 4% increase in gross premiums (revenues) in the first nine months of this year compared to the similar period of 2019, to RON 1 bln (nearly EUR 200 mln).

However, it recorded losses for the period. In October this year, the Financial Supervisory Authority (ASF) sanctioned the company with RON 2.1 million (EUR 430,000) fines and suspended its managers for irregularities.

(Photo: Henning Marquart/ Dreamstime)

andrei@romania-insider.com