Eurohold Bulgaria’s subsidiary, Euroins Romania, has signed a quota share reinsurance agreement with EIG Re, the reinsurance arm of Euroins Insurance Group (EIG), as stated in a recent SeeNews report.
According to SeeNews, Eurohold Bulgaria said that it took this step to guarantee the solvency of Euroins Romania, and to shield it from “regulatory overpressure.”
Last week, SeeNews reported on what Eurohold Bulgaria described as a “hostile takeover attempt” of Euroins Romania, which it said may involve employees of the insurance department of the supervision authority of the Romanian financial regulator – the Financial Supervisory Authority (ASF).
The Bulgarian group stated that this newly announced reinsurance agreement covers the full amount of insurance claims of Euroins Romania and resolves all outstanding issues constituting the dispute with the ASF.
It continued, “Despite the signed new quota share reinsurance contract, the efforts defending the validity of the previous reinsurance contracts, contested by officials of the insurance supervision in Romania, will continue.
“The request for an independent international audit of the state of Euroins Romania before and after these additional measures remains as well.”
The SeeNews report noted that Eurohold Bulgaria observes that Euroins Romania is in an “excellent financial state,” regularly and timely servicing its obligations to clients.
Further, Eurohold expects its Romanian unit to retain a leading position on the local market, where it held a 31% market share as of September.
EIG is a Eurohold subsidiary and the owner of Euroins Romania.
