Regulator places biggest car insurer in Romania under financial recovery

Romania’s Financial Supervisory Authority ASF has placed the local insurer Euroins under financial recovery procedure, due a series of solvency and capital shortcomings. The plan is to restore the company’s financial situation in about a year. Meanwhile Euroins can continue its insurance activity, and all the issued policies remain valid until their expiry date. ASF has to establish a minimum capital for the company, which is insufficiently covered by the EUR 45.2 million capital boost planned by the shareholders for October. Euroins had a capital deficit of some EUR 124 million, according to the results of the Balance Sheet Review (BSR) and the stress test performed by the ASF earlier this year. The insurer’s board needs to submit a recovery plan to the Financial Supervisory Authority. This has to include an estimation of the financial resources intended to correct the solvency margin, as well as a debt repayment program. Euroins is the market leader in Romania mandatory car insurance segment (RCA) and one of the top 10 local insurers overall. It underwrote 1.1 million gross premiums the first half of the year, worth EUR 77.6 million. This represents a quarter of the total RCA market’s value in Romania. Euroins Romania is part Euroins Insurance Group, a subsidiary of the Bulgarian financial group Eurohold. One of Romania’s largest insurers goes bankrupt Distressed Romanian insurer gets capital boost of EUR 0.5 mln Romania’s Financial Supervisory Authority could have more power on insurers editor@romania-insider.com