Verdict in the case of Euroins, the company that damaged millions of Romanians. Bulgarian Supreme Court orders damages to customers

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file Euroins Romania settled through a decision with a major impact. The highest court in Bulgaria definitively settled the dispute regarding the company’s reinsurance contract and established substantial financial obligations for the liquidator in Romania, including in relation to the insurer’s former clients, according to PRO TV news.

Final verdict in Sofia: the reinsurance contract, valid

The Eurohold Bulgaria AD group, the owner of Euroins, announces that the Bulgarian Supreme Court has rejected in full the efforts of the Romanian liquidator to cancel the reinsurance contract concluded before the withdrawal of the company’s license. The decision follows an arbitration decision from 2024 and confirms the legality of the agreement signed between Euroins Romania and the reinsurer EIG Re.

According to the statement sent to the cited source, the court determined that, at the time of the license withdrawal, in March 2023, the company had sufficient liquidity and met the capital requirements provided by European legislation. In the same line, the Bulgarian group claims that the measure of the Financial Supervisory Authority was unjustified.

The context is complicated by investigate criminal case targeting the former heads of Euroins Romania. They are being investigated by the General Prosecutor’s Office for embezzlement, fraudulent management and money laundering, being accused of having illegally transferred important sums from the country over several years, contributing to the collapse of the company and the accumulation of damages estimated at over 120 million euros.

Almost 13 million euros, damages for customers and injured parties

The Bulgarian court’s decision also has direct financial consequences. The liquidator of CITR is obliged to pay approximately 13 million euros, an amount that includes the compensation of former insured persons and injured persons.

“The decision of the Supreme Court of Cassation puts an end to the attempts of the liquidator Euroins Romania to request the nullity of the reinsurance contract and confirms that the latter was concluded in accordance with all the requirements of Bulgarian and European legislation, with EIG Re also having the legal right to retain the deposit premium paid by EIRO under this contract. CITR was ordered by the Supreme Court of Cassation to pay court fees in the amount of EUR 12.77 million (66 million RON) – in essence, direct damages for the insured customers and the injured parties of Euroins Romania”, Eurohold Bulgaria AD transmitted.

The supreme court in Bulgaria thus reconfirmed the conclusions of the arbitral tribunal in Sofia, according to which the reinsurer and the Romanian company acted in good faith and in accordance with European rules, including the Solvency II Directive.

The Bulgarian group also resumes the accusations against the regulatory authority in Romania, claiming that the decision to withdraw the license ignored an official confirmation regarding the solvency of the reinsurer, sent by the supervisory authority in Bulgaria just a few days before the ASF measure. According to the same source, this approach later triggered the company’s insolvency and international litigation, including arbitration proceedings in Washington.

In its reasoning, the court in Sofia rejected all the criticisms made by the liquidator, including those regarding the legality of the arbitral tribunal and alleged irregularities in the procedure. Also, the judges rejected the accusations that the reinsurance contract was a sham or that it served the unjustified transfer of assets. The court’s conclusion is that the reinsurance mechanism was functional and financially supported the company until the license was withdrawn.