The Financial Supervision Commission withdraws the insurance licence of “ZAD DallBogg Life and Health” JSC

With a decision of today, June 9, 2026, the Financial Supervision Commission (FSC, the Commission) withdrew the insurance licence of “ZAD DallBogg: Life and Health” JSC.

Based on the finding that the insurer does not comply with the minimum capital requirement under the Solvency II regime, the Commission requested it to submit a short-term realistic plan for restoring its solvency. Within the deadline set, the company submitted a plan, which the Commission examined and assessed in detail and found that the plan was manifestly inadequate for restoring the insurer’s solvency. Therefore, the Commission refused to approve it by decision of today.

The presentation of a manifestly inadequate recovery plan, in case of the most severe regulatory breach, namely non-compliance with the minimum capital requirement – ​​is grounds for withdrawal of the insurer’s licence. This ground for withdrawal of the licence stems directly from the provisions of the Solvency II Directive. In these circumstances, the Commission, as the national authority that licenced the insurer, has no discretion in the matter and is required to withdraw the licence.

In addition, the Commission found that the insurer had not complied with several coercive administrative measures imposed by effective decisions of the Commission and the Deputy Chairman, Head of the Insurance Supervision Division, as well as by decisions subject to immediate enforcement by law.

The Commission further found that the insurer had committed multiple serious or systematic infringements when operating in the EU Internal Market and the Green Card system. Information on these infringements was received from the national supervisory authorities in Italy, Poland, Romania, Greece and Spain, as well as from the European Insurance and Occupational Pensions Authority (EIOPA), which showed that the insurer had repeatedly breached applicable law over an extended period of time in relation to claims handling, payment of insurance compensations and complaints management. Several coercive administrative measures have been imposed for these violations by both FSC and other national supervisory authorities, but they have not led to a correction of the insurer’s market behaviour, which is incompatible with the rules of the EU Internal Market.

Finally, the Commission found that the insurer had unlawfully refused to pay due and liquid monetary obligations established on the basis and in the amount of final court decisions. Such non-performance was established both based on information received from national supervisory authorities of other EU Member States and from consumer complaints submitted directly to the Commission.

An English version of the operative part of the decision will be published additionally. The Bulgarian version of the decision is legally binding, while the English version is for informational purposes only.

From the date of today’s decision – June 9, 2026, “ZAD DallBogg: Life and Health” JSC is not entitled to conclude new insurance contracts or extend the terms or expand the coverage under current insurance policies. The insurer is not entitled to freely dispose of its assets.

As of today, the insurer is managed and represented by two quaestors. All rights of the previous management and supervisory bodies of the insurer have been terminated, except for their right to appeal the decision to withdraw the licence. Until the decision to withdraw the licence is appealed and the competent court has not issued a final decision, the company remains under quaestorship, which is supervised by the Commission.

Information for insurance policy holders

The withdrawal of the licence does not affect the validity of the insurance contracts already concluded with “ZAD DallBogg: Life and Health” JSC.

All insurance policies concluded with this insurer remain valid and provide the necessary coverage for the relevant risk until the term for which they were concluded. Only after the decision to withdraw the licence and initiate insolvency proceedings enters into force will the insurance policies be terminated by virtue of the law. Until that time, the insurer may collect contributions for insurance premiums, as well as accept, consider and settle all insurance claims filed against it, as well as pay the due insurance compensations.

The insurance compensations under the Motor Third Party Liability (MTPL) policies are guaranteed by the Bulgarian Guarantee Fund. It is responsible for claims that the insurer cannot pay from the moment the licence is withdrawn. In this way, all persons who have claims against the insurer will receive their guaranteed insurance compensations.

Q&A for consumers

  • I have a “ZAD DallBogg: Life and Health” JSC MTPL policy.

What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?

Your MTPL insurance policy remains in force until the expiry of the term for which it was concluded or until a decision is made to open insolvency proceedings against “ZAD DallBogg: Life and Health” JSC by the competent Bulgarian court. After the occurrence of any of these circumstances, the contract ceases to be effective. Until that moment, the contract remains valid and “ZAD DallBogg: Life and Health” JSC is obliged to accept, consider and settle the submitted insurance claims, as well as to pay the due insurance compensations.

After the withdrawal of the licence of “ZAD DallBogg: Life and Health” JSC, the payment of the due compensation under the MTPL is guaranteed by the Bulgarian Guarantee Fund.

Persons who do not maintain valid MTPL are subject to the administrative sanctions provided for in the law. Driving a motor vehicle without valid insurance is not permissible.

After the expiration of the insurance contract, the clients of “ZAD DallBogg: Life and Health” JSC should conclude a new contract for MTPL with another insurer.

Where necessary, insured persons should seek advice from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation before taking any action regarding their insurance.

  • I was involved in a car accident (which involved a “ZAD DallBogg: Life and Health” JSC’s policyholder) and I am still waiting to receive compensation from “ZAD DallBogg: Life and Health” JSC. What can I do?

In this case, the payment of the due compensation will be ensured by the Guarantee Fund of the Republic of Bulgaria. Given the withdrawal of the licence of “ZAD DallBogg: Life and Health Insurance” JSC, it is possible that the consideration and settlement of claims may take longer than the terms applicable to the usual settlement of claims under national legislation.

  • I have suffered damage from a driver insured by DallBogg: Life and Health Insurance Company. Where can I file my claim?

If you are a resident of a Member State of the European Union or the European Economic Area, you can file your claim directly with DallBogg: Life and Health Insurance Company. This rule also applies when the insurance contract of the person who caused the damage has terminated in accordance with national law, provided that the accident occurred before the date of termination of the contract.

  • I purchased an MLTPL policy from “ZAD DallBogg: Life and Health” despite the ban.

What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?

If you are a Bulgarian citizen and have concluded a contract after April 2, 2026, you should keep in mind that the contract does not produce legal effects. You must immediately file an official complaint with the competent authorities and conclude a new contract with an insurer who is entitled to carry out insurance activities.

  • I hold a “ZAD DallBogg: Life and Health” JSC policy which is not MTPL (e.g. credit and suretyship). What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn? Does the protection of the Bulgarian Guarantee Fund apply to all types of insurance?

No. The Guarantee Fund’s protection is only applicable to compulsory MTPL insurance and does not cover other types of insurance, including Credit insurance or Guarantee insurance.

If your claim is related to another type of insurance, your right to compensation will be determined according to the applicable national legislation and there may not be a mechanism for guaranteed payment of compensation.

In this case, insured persons should seek assistance from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation.

  • Where can I find more information?

It is essential that consumers know their rights and obligations under the concluded insurance contracts and are familiar with the consequences of the decisions of the Financial Supervision Commission regarding the activities of “ZAD DallBogg: Life and Health Insurance” JSC.

Additional information can be found on the websites of the Bulgarian supervisory authority and the competent supervisory authority in the country of residence of the respective consumer.

Disclaimer: This English-language press release is provided for information purposes only. The legally binding version of the Commission’s decision is the original Bulgarian text.

Denitsa Velichkova, Deputy Chair of the FSC, participated in the “Ring the Bell for Gender Equality” ceremony at the BSE

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Denitsa Velichkova, Deputy Chair of the Financial Supervision Commission (FSC) in charge of the Investment Supervision Division, participated in the twelfth “Ring the Bell for Gender Equality” ceremony, organized with the support of the United Nations Global Compact and UN Women under the auspices of the United Nations. This year’s campaign message was “Right. Equality. Empowerment. For all women and girls.” The event took place at the premises of the Bulgarian Stock Exchange.

The ceremony was opened by the Chief Executive Officer of the Bulgarian Stock Exchange, Assoc. Prof. Dr. Manyu Moravenov, who presented data from the “Women on Boards” initiative regarding the participation of women in the management bodies of listed companies. The statistics presented show that the number of women CEOs in public companies has increased by 10% over the past year.

Denitsa Velichkova noted that the financial sector is often an example of the strong presence of women both as professionals and as leaders; however, sustainable success is achieved when there is balance and partnership between women and men in decision-making processes and in building sustainable organizations.

The ceremony was also attended by Diana Yordanova, Diana Yordanova, Deputy Chair of the Financial Supervision Commission, Head of the Social Insurance Supervision Division..

Within the framework of the event, the special guest speaker was Krasimira Hadzhiivanova, founder of the platform “Maiko Mila” and the social enterprise “Ole Male”, who delivered a lecture titled “Social Entrepreneurship as a Form of Leadership.” She shared examples of how social enterprises create opportunities for financial independence and leadership for women in Bulgaria.

The ceremony concluded with the symbolic ringing of the stock exchange bell, marking the participants’ support for equal opportunities and for building a more open, fair, and sustainable business environment.

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The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Liechtenstein of the merger from the insurance undertaking “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”, including insurance contracts on which Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of Liechtenstein on granting consent of the merger of “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”

FSC Advocates for the Interests of the Bulgarian Market in the Debate on EU Capital Market Integration and Competitiveness

Vasil Golemanski, Chair of the Financial Supervision Commission (FSC), participated in the meeting of the Board of Supervisors of the European Securities and Markets Authority (ESMA), the independent EU authority playing a central role in the supervision of financial markets across the European Union.

A key focus of the discussions was the Market Integration and Supervision Package and its contribution to advancing the Savings and Investment Union, strengthening the competitiveness of EU capital markets and reducing regulatory burden. Board members also examined forthcoming legislative and regulatory amendments, including measures related to listing rules, market transparency, post-trade infrastructure and supervisory convergence.

During the debate, Mr Golemanski underlined the importance of ensuring that ambition is matched by operational feasibility:

“Deeper integration is essential if we want European savings to be channelled more effectively into investments that remain and generate value within the European Union, while reinforcing the EU’s position as an attractive and predictable place to do business. At the same time, proportionality must remain a guiding principle. Reforms should be sufficiently ambitious, yet workable in day-to-day supervisory practice, without creating unnecessary operational friction or new fault lines between markets.”

The FSC remains committed to ensuring that the Bulgarian non-banking financial sector is kept well informed of European regulatory developments and that the interests of the Bulgarian capital market are consistently and effectively represented in key supervisory discussions and decision-making processes at EU level.

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The FSC Publishes Answers to the Most Frequently Asked Questions on Crypto-Assets

The Financial Supervision Commission (FSC) has published answers to the most frequently asked questions on crypto-assets, related to the Regulation on Markets in Crypto-Assets (MiCA) and the national legal framework under the Markets in Crypto-Assets Act.

The initiative aims to support companies that intend to apply for authorisation as crypto-asset service providers, as well as other interested stakeholders, by facilitating the interpretation and practical application of the new regulatory requirements.

The Frequently Asked Questions (FAQ) cover the main types of crypto-asset services subject to licensing, the specific features of the individual activities, the classification of service providers, and the conditions for application. Particular attention is given to the requirements concerning the business plan, organisational structure, governance arrangements, staff, and internal rules and procedures, as well as to the assessment of actual presence and operational activity in the Republic of Bulgaria.

The document also provides information on the transitional regime applicable to entities entered in the register pursuant to § 5(3) of the Transitional and Final Provisions of the Markets in Crypto-Assets Act, including the licensing deadlines, and the consequences following the end of the transitional period, including the supervisory authority’s expectations regarding the orderly winding-down of activities where authorization has not been obtained.

By publishing the questions and answers, the FSC seeks to enhance the transparency and predictability of its supervisory practice, support the timely preparation of market participants, and promote the responsible and sustainable development of the crypto-asset market in Bulgaria, in line with the European standards for investor protection and financial stability.

Everything you need to know about crypto-assets is available here.

FSC and FID – SANS carried out jointly a training regarding the measures against ML/FT and the proliferation of weapons for mass destruction.

On 1st October, 2025 the Financial Supervision Commission and the Financial Intelligence Directorate of State Agency for National Security conducted a training focused on topics related to the implementation of the AML/CFT/CPF measures provided for in the Law on Measures Against Money Laundering (LMML), the Law on Measures Against the Financing of Terrorism and the Proliferation of Weapons for Mass Destruction and the acts on their implementation, organized for representatives of the investment intermediaries, management companies and alternative investment fund managers. The event was in hybrid form and was attended by more than 100 representatives of the obliged entities under Art. 4, items 8 – 10 of the LMML.

In the course of the meeting were discussed the following topics:

  • goAML registration;
  • Changes in the AML/CFT/CPF legislation;
  • Implementation of the AML/CFT measures in practice.

The conducted training aimed to deepen the understanding of the representatives of the investment intermediaries, management companies and alternative investment fund managers regarding the requirements of the preventive legislation and their essential role in the process of maintaining the stability of the financial sector and in assisting to the competent state authorities in preventing and detecting money laundering and terrorist financing and proliferation of weapons for mass destruction activities.

The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “GENERALI ESPAÑA, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS” to “GENERALI SEGUROS Y REASEGUROS, S.A.”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Spain of the merger from the insurance undertaking “GENERALI ESPAÑA, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS” to “GENERALI SEGUROS Y REASEGUROS, S.A.”, including insurance contracts on which Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of Spain on granting consent of the merger of “GENERALI ESPAÑA, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS” to “GENERALI SEGUROS Y REASEGUROS, S.A.”

The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “MSIG Insurance Europe AG” to “MS Amlin Insurance SE”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Germany of the merger from the insurance undertaking “MSIG Insurance Europe AG” to “MS Amlin Insurance SE”, including insurance contracts on which Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of Germany on granting consent of the merger of “MSIG Insurance Europe AG” to “MS Amlin Insurance SE”.