“ASF’s decision is based on the conclusions of a control report regarding EUROINS’ activity and financial management, which unveiled a series of shortcomings regarding the solvency and share capital level. Furthermore, ASF’s Board targeted to identify, based on the financial reports of June 30, 2015, a minimum necessary of capital insufficiently covered through a contribution of RON200 million assumed by the company’s shareholders for October 2015, in the context of additional liquidity and capital requirements resulted from enforcing the new supervisory standards Solvency II, as of January 1, 2016,” ASF said in a statement.
Euroins’ Executive Board has 20 days, upon taking note of ASF’s decision, to send a recovery plan to ASF, which will include an estimation of the financial resources meant to correct the solvency margin, the reinsurance programs and a debt clearing program.
The insurer will also submit to ASF, on a monthly basis, a report regarding the stage of measures it will assume through the recovery plan.