Romania's Financial Supervisory Authority (ASF) fined local insurer Euroins with RON 2.1 million (EUR 0.4 mln) and withdrew the licenses of the company's general manager and executive director, daily Bursa reported.

Euroins was the fourth-biggest insurer in Romania by revenues in 2019, with a market share of over 11%.

The penalties come after ASF spotted serious deficiencies in a control carried out in July-September this year.

The problems are related to the calculation of technical reserves on March 31, 2020, the erroneous registration of reinsurance commissions, as well as the method of calculating the technical reserves and the way of determining and reporting the basic equity elements covering the solvency capital requirement and the minimum capital requirement.

ASF imposed two fines, one of RON 600,000 and another of RON 1.5 mln. Along with the latter, ASF lifted the authorizations of general director Mihnea Tobescu and executive director Milena Guentcheva, and fined them RON 100,000 each.

Euroins must submit to the ASF a financing and recovery plan to restore the solvency indicators according to the law.

The company must also review the mandatory car insurance (RCA) fees, taking into account the deficiencies found, within 90 days after receiving the decision.

Euroins Romania announced that it would challenge the supervisor's decision.

Euroins also said it would receive financial support worth RON 275 mln (EUR 55 mln) from its majority shareholder, Bulgarian group Eurohold.

(Photo: Pixabay)

andrei@romania-insider.com