The Bulgaria Financial Supervision Commission has withdrawn the insurance licence of ZAD DallBogg: Life and Health JSC after finding that the insurer did not comply with the Solvency II minimum capital requirement and had submitted a manifestly inadequate short-term plan to restore solvency. The Commission said that, in those circumstances, Solvency II required it to withdraw the licence rather than exercise discretion. The decision also rests on wider supervisory findings. These include failure to comply with several coercive administrative measures, multiple serious or systematic infringements in the EU Internal Market and the Green Card system, and repeated breaches over an extended period in claims handling, payment of insurance compensation and complaints management. The Commission said those findings were supported by information from supervisors in Italy, Poland, Romania, Greece and Spain, as well as the European Insurance and Occupational Pensions Authority. It also found that the insurer had unlawfully refused to pay due and liquid monetary obligations established by final court decisions. From June 9, 2026, the insurer is barred from concluding new insurance contracts or extending or expanding existing cover, and it may not freely dispose of its assets. Two quaestors now manage and represent the company, while the powers of its previous management and supervisory bodies have been terminated except for the right to appeal the licence withdrawal. Existing insurance contracts remain valid until their contractual expiry or until the withdrawal decision and insolvency proceedings take effect. For Motor Third Party Liability policies, compensation is guaranteed by the Bulgarian Guarantee Fund if the insurer cannot pay.

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