CITR has completed the report on the causes of Euroins bankruptcy

Press releases

Bucharest, April 5, 2024: CITR Bucharest SPRL, the judicial liquidator of Euroins, has completed the report on the causes of Euroins' bankruptcy and identified a series of operational and fund management elements that led to bankruptcy.

The preparation of the report on the causes is an essential stage in the bankruptcy procedure. On one hand, it concludes the stage of historical and contextual analysis on the reasons that led to bankruptcy, and on the other hand, it provides the procedural framework for their debate having as purpose protecting the creditors' interests as much as possible,” said Paul-Dieter Cîrlănaru, CEO of CITR.

From the analysis of the indicators, CITR found that the largest share in the insurance portfolio of Euroins was held by the Motor Vehicle Liability Insurance class (over 95% in 2022), followed by guarantees (over 1% in 2022) and insurance for land transport means (0.97% in 2022). The business line focused on Motor Vehicle Liability Insurance brings losses from the perspective of increased damage, while other insurance companies record an average of 54% in Motor Vehicle Liability Insurance in 2022.

The causes identified in the report are:

  • Non-compliance with solvency indicators: The own funds that the company needed to have available for covering potential debts to all insureds, reinsurers were insufficient. As of 09/30/2022, the own funds required to cover the SCR were in the amount of 2.2 billion lei, and those required for the MCR coverage were almost 1.8 billion lei.
  • Damages reserves were below the adequate level for covering potential damages to the insured, a result that also arises from specific tests conducted by Euroins. As a result of the inventory of damage files and litigation files regarding claimed damages, the judicial liquidator found a difference of 1 billion lei between the records existing at the date of the opening of the bankruptcy procedure and the inventory result, from approximately 600 million lei to 1.7 billion lei.
  • Failure to pay the damages on time: led to the exponential increase in the risk of triggering forced execution procedures, which led to the reduction of the company's assets by accumulating additional expenses compared to the damages to be paid. Only the amounts as penalties are over 300 million lei, to which are added the execution expenses;
  • Lack of efforts to recover debts and granted loans.
  • Inefficiency in recovering debts from regress: as of December 31, 2022, according to the company's accounting records, there were unrecovered amounts in the amount of 15.5 million lei. To these are added unrecovered amounts from the various debtors category of almost 60 million lei;


  • Conclusion of the contract with EIG Re through which financial assets consisting of securities, receivables from reinsurance, and availabilities in accounts were transferred out of the company, in a total value of over 1.5 billion lei, a contract that is forwarded for analysis to the syndic judge;
  • Losses resulting from investments: during the period 2019-2023, CITR centralized their value, which amounts to 18.3 million lei;
  • Constant losses recorded at the level of insurance activity, across various insurance classes, reaching a maximum in 2022, when for Motor Vehicle Liability Insurance losses of 917.6 million lei were recorded.

Among the elements that led to the opening of the bankruptcy procedure, the judicial liquidator identified acts that fall under Article 268 of the Insolvency Law for which the syndic judge may order that the damage be borne by members of the management and/or supervisory bodies within the company, as well as by any other person who contributed to the debtor's insolvency state by committing one of the acts expressly provided by law.

Brief history

On June 9, 2023, the court ordered the opening of the bankruptcy procedure for EUROINS, and CITR was appointed as the judicial liquidator. According to the legal mandate, CITR manages the liquidation of the company through the following steps: identification of the assets and liabilities of the bankrupt company and recovery of the amounts the company is entitled to obtain to offer them further to its creditors, whether employees, injured parties, or business partners. Moreover, the judicial liquidator is responsible for identifying the causes of bankruptcy and, if applicable, formulating actions to the syndic judge to hold responsible persons accountable.

The next steps to be carried out within the EUROINS bankruptcy procedure by the judicial liquidator will consist of:

  • Finalizing the sale of the remaining assets in the company's estate;
  • Recovering its claims;
  • Representing the company in over 25,000 litigations in which it is a party;
  • Submitting to the syndic judge the request to hold responsible the persons whose acts led to the opening of the bankruptcy procedure.