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The Euroins business licence was withdrawn without just cause and that is why it is natural to sue the Financial Oversight Authority (ASF) for the investment we made and for the losses sustained, Eurohold CEO Assen Hristov told a news conference on Monday.
"Considering the fact that we are completely convinced that the licence was withdrawn without just cause, it is natural for us, as a shareholder, to sue them for the investment made, to the amount of 270 million euros. The amount is the value of the company according to the balance sheet. The market price is higher. And let's sue them for 200 million euros as losses incurred. This is where the damage to the reputation comes in, the damages that we should cover and we pay to other insurers. Interest is added to this and we arrive at approximately 500 million euros. The decision taken by the ASF board leads to the following damages caused to Romanian citizens: losses for the Guarantee Fund 400 million, between 350 and 500 million as a result of the files as a result of the actions in court," said Hristov.
He added that this decision regarding the insolvency of Euroins also leads to an artificially induced crisis on the insurance market, which will lead to an increase in charges, told Agerpres.
Hristov announced that he has drawn up and on Tuesday will submit to the attention of the ASF board a request to revoke the decision regarding the insolvency of Euroins.
"According to the law, this cannot happen if the board decides this way, but it can happen in the situation where the ASF requests the court to cancel the decision as a result of the fact that a mistake was made," said Hristov.
He added that if the decision is overturned, Eurohold, together with the EBRD and investment funds from Finland, the UK, the Netherlands, which are Eurohold shareholders, will continue to support the company and if "indeed needs money", to come up with funds, with capitals and to protect clients.
The ASF Council decided on Friday to withdraw the business licence of the Euroins Romania company noting signs of the company's state of insolvency.
It also decided ASF promoting a request for the opening of the bankruptcy procedure and the appointment of the Insurance Guarantee Fund (FGA) as the interim administrator of the company for the purpose of providing the administration and management of the insurer's activity and the adoption of the necessary measures for the preservation of its assets.
The duties of the company's management are suspended by law. FGA's mandate ceases upon the appointment of a judicial liquidator.
Later, the management of Eurohold claimed that the ASF decision on Euroins was tantamount to "a hostile takeover of the assets of the branch in Romania" and announced that it will start the process of challenging the bankruptcy procedure decision.
