February 13 (SeeNews) - Insurer Euroins Romania Asigurare Reasigurare said it will hold a general shareholders meeting on March 16 to elect new board members in order to end its temporary administration by the Insurance Guarantee Fund (FGA).
"After this procedure, we are confident that all requirements will be met and the Company will enter into its common operational cycle," Euroins Romania said in a press release on Thursday.
The company also said it has already discussed with ASF the proposals for new board members. The nomination of a new board is the prerequisite for the termination of the temporary administration of Euroins Romania by (FGA) imposed by Romania's financial regulator ASF.
ASF said earlier on Thursday that it has fined Euroins Romania with 500,000 lei ($115,000/105,000 euro) for violating some provisions of Law 132/2017 regulating the payment of compensations, and appointed FGA as temporary administrator at the company for a limited period of time, until the appointment of a new board of directors.
The financial authority stressed that the appointment of a temporary administrator does not represent a launch of a special administration procedure at Euroins Romania, as special administration is a measure typically applied in case of deterioration of the financial situation of a company.
ASF also stressed that Euroins is meeting the prudential indicators, both in terms of minimum capital requirements and solvency capital requirements.
At the end of September, Euroins Romania held a 11.54% share of the country's insurance market, being the fourth largest insurer after City Insurance, Allianz Tiriac Asigurari and Omniasig VIG, according to the latest data available from ASF.
Euroins Romania is part of Bulgaria's Euroins Insurance Group (EIG).
(1 euro=4.7646 lei)