Eurohold Bulgaria AD

Earnings Release • Jul 13, 2016

EUROHOLD is satisfied with the decision on including of insurance groups in the upcoming reviews

EIG and its subsidiaries entirely support the review of the balance sheets of insurers

In connection whit the decision of the Financial Supervision Commission and the Management Committee (EIOPA, the Ministry of Finance, etc.), published on 8th of July, on the review of balance sheets in the insurance sector, the inclusion of insurance groups in the upcoming reviews, the management body of Eurohold Bulgaria states the following:

"We believe that the decision of the FSC and the Managing Committee (EIOPA, the Ministry of Finance and others.), published on the website of the regulator on 08.07.2016, is entirely in tune with the Bulgarian and European legislation, including with the European directive Solvency II, and we fully support it. It revises the original intentions of the supervisory authorities the groups to be subjected to review, like all insurance and reinsurance companies and regulates explicitly that insurance groups with subsidiaries insurance companies are not subject to review on an stand-alone base and there is no need to contract with independent external auditors for the assessment of their balance sheets on an stand-alone base, which would create unnecessarily high costs and have shifted the focus of reviews. With a view to solving the problem of the groups' handling in the forthcoming reviews, Eurohold Bulgaria does not intend to appeal the decision of the FSC and the Management Committee (EIOPA, the Ministry of Finance, etc.) through judicial channels.

Finally, the management of the insurance group Euroins Insurance Group AD and its four subsidiaries in Bulgaria - Euroins Insurance AD, Euroins Life AD, Euroins Health assurance AD and EIG Re AD(formerly name HDI Insurance), once again declared their support for the upcoming reviews of balance sheets in the sector and emphasize that their implementation will have a positive effect on the stability of the sector and protection of consumers of financial services in the country. "

Euroins Insurance Group has already increased the capital of three of its four insurance subsidiaries in Bulgaria to support their business development and in compliance with the capital requirements of Solvency II. The capital of EIG Re (HDI Insurance) increased by BGN 4 million and the capital of Euroins Health

Insurance increases by BGN 1.5 million. At the same time, Euroins Bulgaria received a subordinated term debt amounting to BGN 7.7 million.

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About Euroins Insurance Group

EUROINS INSURANCE GROUP is one of the largest independent groups operating in the CEE and SEE insurance markets. The company is focused in providing a full range of insurance products in the areas of general, health and life insurance. Sofia-based group operates in seven European countries, has more than 7% market share in Bulgaria, Romania and Macedonia, and in 2014 initiated operations in Greece. The group has over 2 million clients, 1400 employees and annual revenues of over EUR 250 million.

EUROINS INSURANCE GROUP is a subsidiary of EUROHOLD BULGARIA – leading Bulgarian company, listed on BSE-Sofia and WSE. EUROHOLD BULGARIA operates across the CEE and SEE, focused on non-banking financial services and asset management.

www.eig.bg www.eurohold.bg