Eurohold Bulgaria to seek at least 500 mln euro in Euroins Romania arbitration

Eurohold Bulgaria and its insurance arm, Euroins Insurance Group (EIG), have sent a notice of dispute to the Romanian government, a precursor to launching arbitration under the treaty for protection of investments between Bulgaria and Romania, Eurohold said in a press release.

In June, a Romanian court confirmed the insolvency of Euroins Romania and launched bankruptcy proceedings against the insurer. In March, the country's financial regulator ASF withdrew the operating licence of Euroins Romania, and requested the launch of bankruptcy proceedings.

Eurohold Bulgaria will not seek arbitration unless the current dispute over Euroins Romania’s case is remedied quickly, and the damages caused to the group are duly compensated, it added.

Eurohold argues that with its decision to withdraw Euroins Romania's licence, ASF carried out multiple breaches of EU legislation, in particular the Solvency II regime, the prudential regime for insurance and reinsurance activities applicable to all EU member states since 2016. ASF's decision on Euroins Romania was "arbitrary, discriminatory, and constituted an unlawful expropriation in a brutal breach of international law," according to the Bulgarian group.

Eurohold and EIG have picked as advisors multinational law firm Pinsent Masons and Bulgarian business law firm Djingov, Gouginski, Kyutchukov & Velichkov (DGKV).

($ = 0.9477 euro)