Euroins has enough assets to make payments in the next three weeks (Eurohold)

The Euroins company is fully covered and has enough assets to continue making payments in the next three weeks even if it has no income, said Monday, in a press conference, the chairman of Eurohold, Assen Hristov.

"The value of the remaining assets in the company is approximately 300 million RON as of March 17 and we have 120 million RON in claims from the Guarantee Fund to recover. We also have almost 30 million RON in real estate, another 30 million RON to be recovered in one or two months, and various other claims. The conclusion is: even if the value of the technical reserves increases, Euroins Romania is fully covered, the reinsurance contract works starting from January 1," he stated.

He added that despite this situation, the Financial Supervisory Authority (ASF) decided not to recognize the reinsurance contract with EIG Re and to revoke the license of Euroins Romania, "which can be interpreted as an illegal action with intent".

According to Eurohold, ASF does not recognize the reinsurance contracts of Euroins Romania, but decided that the company's reserves must be increased by several million RON, "without taking into account any of the actuarial assumptions".

The chairman of Eurohold also mentioned that on March 17, 2023, when the license was lifted and the state of insolvency of the company was announced, there were 40 million RON (about 8 million euros) in Euroins accounts and receivables, amounts that had to be recovered from the broker, another 70 million RON.

"So in total almost 24 million euros. The company's daily expenses are 5.5 million RON for the payment of damages and on average 1 or 1.5 million RON for expenses," Hristov pointed out.

According to the ASF chairman, Nicu Marcu, the collaboration with Euroins was extremely difficult, because they did not provide documents and information, which is why the controls were arranged almost monthly.

The Council of the Financial Supervisory Authority decided on Friday to withdraw the operating authorization of the Euroins Romania company, noting the signs of the company's state of insolvency.

Later, the management of Eurohold argued that the decision of the Financial Supervision Authority regarding Euroins represents "a hostile takeover of the assets of the branch in Romania" and announced that it will start the process of contesting the decision regarding the bankruptcy procedure.AGERPRES