Euroins Insurance Group Receives Directive from Russian Central Bank as Shareholder

Euroins Insurance Group (EIG), a subsidiary of Eurohold Bulgaria, the largest insurer in Bulgaria, has received a directive from the Russian Central Bank. As a shareholder with a stake of over 10% in an undisclosed insurance company, EIG has been instructed to take action.

The announcement was made on the Central Bank's website, although the name of the insurer was not disclosed. It is worth noting that EIG previously had a subsidiary in Russia. However, in January, the group announced its decision to sell its stake in the Russian LLC "Euroins" and withdraw from the country. The sale agreement was made with Kirill Boshov, a manager at Eurohold - FM, and involved the group's 48.6% shares in the legal entity. EIG clarified that it continues to operate in other countries in the region, such as Ukraine and Georgia.

Based on the Central Bank's message, it can be inferred that the directive is related to a violation of a provision in the law "On the Organization of Insurance Business in the Russian Federation" (Article 32.1, paragraph 10.2). This provision pertains to shareholders with over 10% stake in an insurer and addresses issues such as deteriorating financial condition or non-compliance with business reputation requirements. In response to such violations, the Central Bank requires rectification or a reduction in the shareholder's stake in the insurer's capital, as reported by FrankMedia.

A spokesperson for EIG responded to Frank Media, stating that the group has already signed an agreement to sell its subsidiary to a Russian company, which has received approval from the Federal Antimonopoly Service. However, the spokesperson mentioned that they are still awaiting approval from the Central Bank and the government commission responsible for granting permissions to close the deal. The spokesperson assured that the directive received from the Central Bank is unrelated to this pending sale.