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The City and Euroins companies owned almost 80% of the RCA auto civil liability insurance market, Chairman of the Financial Oversight Authority (ASF) Nicu Marcu noting that in no other country two companies own a such a large market share.
"Why did this happen? Because, firstly, they charged some very low, unsustainable fees - and secondly, because there are very few companies operating in the market, and the serious companies withdrew seeing the tactics used by these companies," Marcu said in a testimony to a specialist Senate committee.
The ASF Council (ASF) decided on Friday to withdraw the business licence of the Euroins Romania company noting signs of the company's state of insolvency, told Agerpres.
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.
