National Bank of Slovakia moves insurer Novis toward bankruptcy

The National Bank of Slovakia (NBS) has asked the district court in Nitra to open insolvency proceedings against insurer Novis. The court’s initiation does not automatically declare bankruptcy; it will assess whether legal conditions for insolvency are met.

Novis lost its Slovak insurance licence in June 2023 after the regulator said the company failed to meet capital requirements and had not rectified longstanding breaches. The insurer disputes the licence revocation and the current bankruptcy proposal, arguing that the regulator’s actions have caused damages exceeding €400 million, a figure that the bank estimates is growing by €8 million each month.

The company, which operates in several European markets, is prohibited from issuing new policies but continues to service existing contracts. In 2024 Novis reported a loss of more than €18 million, down from a €25 million loss the previous year, and its portfolio has shrunk to about 31,000 policies.

The dispute between Novis and NBS revolves around the valuation of liabilities and capital adequacy, with the insurer claiming the regulator’s decisions were unlawful and aimed at undermining its legal defence.