The European Bank for Reconstruction and Development (EBRD) announced on March 8 that it hired a global consultancy company to quickly carry out, by the end of March, an independent actuarial analysis of Euroins' reinsurance contracts at Euroins (where it is an indirect shareholder) so that any potential capital shortfall is known and remedied in time, so as not to disturb the market anymore, announced the EBRD Director for Central and South Eastern Europe, Charlotte Ruhe, in a letter sent to the president of the ASF, Nicu Marcu, and finance minister Adrian Câciu, consulted by the Profit.ro.

This reinsurance contract, at the heart of the Euroins scandal and possibly bankruptcy, is interpreted differently by the Romanian market authority and the insurance company.

Insurer Euroins has carried out premeditated fraud, including by signing a reinsurance contract with EIG Re – the reinsurance arm of parent group Eurohold – on February 9, this year, the vice-president of the Romanian Financial Supervisory Authority (ASF) stated in front of Romanian Senators, who investigate the performance of ASF as regards the latest two bankruptcies in the country's insurance market.

"We learned of this contract on February 17 from the media. I asked for it and received it on February 21. What's more, in certain articles of the reinsurance contract, it appeared that if the balances are positive from day to day, the positive balance is transferred abroad, and the negative balance will also be replenished by them from abroad. So it was a premeditated fraud," the ASF official stated, according to Hotnews.ro. 

In its turn, Eurohold main shareholder Assen Hristov accuses ASF of causing the insolvency of Euroins (Romania) exactly by not recognizing the reinsurance contract.

"ASF decided not to recognize this contract, rather not to apply it. After deciding that it will not allow this contract, it decides to lift the Euroins Romania license, announces that it will have to go into insolvency, and suddenly announces the guarantee fund to proceed to the termination of this reinsurance contract – by which it admits that this contract exists. The ASF creates a vicious circle between cause and consequence, which can be interpreted as an intentionally unlawful action," Hristov stated, quoted by Economica.net. 

iulian@romania-insider.com

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