The International Court of Arbitration has ruled to confirm the legality and enforceability of the reinsurance contract between Bulgarian non-life insurance company EIG Re, a subsidiary of Eurohold Group, and Euroins Romania, Eurohold said in a release on Tuesday, explaining that the management of Euroins Insurance Group continues its due process of defending the interest of all stakeholders and policyholders.
"On July, 2 2024, the International Arbitration Court at the Sofia-based Institute of Private International Law took a decision on the arbitration case initiated by Insurance Company EIG Re EAD (EIG Re) in relation to the reinsurance contract concluded on February 9, 2023 between EIG Re and Euroins Romania - Asigurare Reasigurare S.A. (Euroins Romania), a subsidiary of Euroins Insurance Group AD," the release states.
It goes on to note that the decision fully confirms the arbitration claim of EIG Re, including by "confirmation that the reinsurance contract is concluded in compliance with all requirements of the Bulgarian legislation (the applicable legislation in relation to the reinsurance contract)."
Also, the Court found that the reinsurance contract in question "is fully effective and there are no conditions for partial and/or full nullity of any of the clauses and/or the reinsurance contract" which was was lawfully terminated on March 17, 2023. As a result of the lawful termination, the minimum and deposit premium is lawfully retained by EIG Re, Eurohold said.
"The current decision of the Arbitration Court confirms that the actions of the Management of EIG Re, Euroins Romania, as well as Euroins Insurance Group, had been lawful and carried out in full compliance with the requirements of the applicable Bulgarian legislation. The actions of the Management of Euroins Insurance Group were fully focused on the provision of the necessary support of the solvency position of Euroins Romania and the Reinsurance Contract was one of the key instruments in this process," the release states.
EIG Re says that the current arbitration decision "confirms that the steps taken by the Management of Euroins Insurance Group had been sufficient and lawful for ensuring the necessary support of the Group's Romanian subsidiary. It also confirms that the reasons for the revocation of the license of Euroins Romania had been purely related to the highly questionable actions of the former management of the Romanian financial regulator (ASF), which have led to significant deteriorating effects over the rights of all policyholders."
Eurohold Bulgaria AD is an energy and financial group operating in Central, Eastern and South-Eastern Europe, listed on the Bulgarian and Warsaw Stock Exchanges.
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