Bulgarian insurance group Euroins (EIG) filed a request with the Bucharest Court of Appeal to recover the functioning license of its local subsidiary Euroins Romania and, at the same time, came up with a proposal that would allow it to operate on the Romanian market.

Specifically, EIG filed a request in court to abrogate the March 17 decision under which Romania's market authority ASF lifted the functioning license to Euroins Romania for "signs of insolvency", citing insufficient capital.

Later, Europe's body EIOPA reportedly confirmed the lack of capital – although no report was officially published in this regard.

At the same time, EIG says it is ready to transfer the portfolio of its Romanian subsidiary to the Bulgarian reinsurance subsidiary EIG Re, which would thus make all the payments related to the portfolio. As part of the amicable settlement proposal, Euroins Bulgaria would start operating on the Romanian market under the Freedom of Services (FoS) regime.

The two elements of the proposal are not presented by EIG as linked, but it is natural to assume that unless the Bulgarian company settles amicably the issue of its Romanian portfolio, the Romanian market authority will ban Euroins Bulgaria from launching operations on the local market.

After lifting Euroins Romania's operating license, ASF transferred its portfolio to the policyholder guarantee fund FGA – meaning that the payments will be serviced by future insurance buyers.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)