CITR: "About 1.6 million RCA Euroins policies are still valid"

About 1.6 million RCA Euroins policies are currently valid, out of the two million that existed at the time of the opening of the insurer's bankruptcy proceedings, the representatives of CITR, the judicial liquidator of Euroins Romania, stated yesterday in a press conference.

According to the insolvency office, preliminary data indicate the insurer's total debts of five billion lei, of which 600 million are currently due.

Alina Popa, the Coordinator of the team managing the Euroins bankruptcy, said: "The table of creditors contains, until now, more than 1,100 debt statements, and the due debts amount, so far, to 600 million lei. The total exposure can reach up to five billion lei. Part of this amount represents the potential liabilities of some damages that have not materialized at this time and which are not certain".

Debts to the Insured Guarantee Fund (FGA) amount to 2.14 billion lei, the largest reserve calculated by the FGA to date, while Euroins Romania's debts to other policyholders amount to 1.52 billion lei. The debts to insurers and reinsurers amount to 613 million lei, and the debts owed by Euroins to banks are 598 million lei, according to CITR data.

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After the preliminary analysis of the causes of the Euroins bankruptcy, CITR denounced 1,000 contracts and forwarded for analysis to the syndic judge the contract concluded with EIG Re through which assets and cash were transferred from Euroins Romania. The insolvency office handles more than 25,000 disputes in which Euroins is involved, compared to 14,000 for City Insurance.

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Last week, Prime Minister Marcel Ciolacu announced the extension of the validity of Euroins policies by another three months, until December 8. "If the current expiration date, September 8, were to be kept, it is obvious that there would be a real danger of a decrease in the degree of compulsory RCA insurance coverage of a huge segment of the national car fleet," said Ciolacu, quoted by News.ro . According to CITR representatives, December 7 is the last day of validity of insurance policies issued by Euroins, respectively February 5, 2024 for guarantee insurance. Until these dates, all Euroins insureds are obliged to conclude new insurance policies, CITR representatives also specified.

Euroins was one of the largest insurance companies with the largest share of the RCA insurance market. In March 2023, Euroins held about 27% of the RCA market.

The following steps in the bankruptcy procedure are: the gathering of creditors, the completion of the valuation of the assets, the continuation of the steps for the recovery of the claims, the capitalization of the assets, the support in court of the action to cancel the reinsurance contract concluded with EIG Re, the preparation of the report on the causes that led to the bankruptcy of the company and the publication of the definitive table of debts after judging any appeals, according to CITR.

In the spring of this year, the Financial Supervisory Authority (ASF) decided to withdraw the authorization for the Euroins Romania company, and the opening of the bankruptcy procedure was pronounced by the Bucharest Court on June 9, 2023. According to the ASF, the insurance company did not have the solvency capital (SCR) required, in the amount of 2.19 billion lei, nor the funds to cover the MCR, in the amount of 1.75 billion lei.