ASF decided to fine Euroins Romania for failing to transmit to customers compensation offers or notifications of the reasons for which the compensation claims had not been approved, as well as for the delayed payment of damages, the financial regulator said in a press release on Wednesday.
The regulator carried out checks at the company during May-October, it added.
Within two months, Euroins Romania must send ASF a recovery plan for approval, with measures to restore the level of eligible own funds covering the Solvency Capital Requirement (SCR) or to change the risk profile so that within six months the SCR will be respected again.
In a press release issued shortly after ASF's decision, Euroins Romania said that the company is in full process of financial recovery, and the fine issued by ASF is related to some past problems which have been solved.
"Euroins Romania shareholders have made efforts to remedy all their financial challenges since the end of 2020. As a result, in the last 12 months, the company has benefited from a series of capital infusions totaling over 300 million lei, that led to solving all financial challenges, including those identified in the past and identified by the ASF," Euroins Romania said.
Euroins, which is part of Bulgaria's Euroins Insurance Group (EIG), said that this year alone, it has paid more than 1.3 billion lei to cover some 143,000 claims.
"A confirmation of the fact that today Euroins Romania has a better financial position than ever before is the involvement of the European Bank for Reconstruction and Development (EBRD) as a shareholder in the parent company, this being an unprecedented message of trust in Euroins Romania and a public confirmation that important steps were taken in recent months for healthy and sustainable growth," the company added.
In October, the EBRD signed an agreement to acquire a minority stake in Bulgaria’s Euroins Insurance Group (EIG), by investing 30 million euro ($34.8 million) through a capital increase.
As at the end of September, Euroins Romania held a 12% share of the country's insurance market, which made it the third largest insurer after insolvent City Insurance and Allianz Tiriac, according to the latest data available from the ASF. In September, ASF revoked the the operating licence of City Insurance and started bankruptcy procedures.
