On focus

The Council of the Guarantee Fund approved the 2025 annual report and an updated Methodology for the compensation of property damage

01 April 2026

The Council of the Guarantee Fund unanimously approved the institution’s annual report, which shows very strong financial results and a sustained positive trend over the period 2020–2025. During the meeting, amendments to the Methodology for the settlement of property damage claims were also adopted. These introduce an updated approach to determining the value of damaged vehicles, including the use of electronic systems and market benchmarks, as well as an adjustment of key pricing parameters in line with market conditions and inflation developments.

The Fund’s net assets have increased nearly 2.5 times over the five-year period, with significant growth observed in both funds, and at a pace exceeding accumulated inflation. At the same time, the capital requirements of the Uninsured Vehicles Fund are covered fivefold as of the end of 2025, which is a clear indicator of financial stability.

In parallel, the Guarantee Fund maintains a high level of asset quality and liquidity. The coverage ratio of provisions for outstanding claims reaches 1.9x, while 69.4% of the investment portfolio as of the end of 2025 consists of government bonds with an investment-grade rating and cash.

It is also particularly noteworthy that with an average annual growth in revenues of 13.2%, profit increased by 50.7%, clearly illustrating the effectiveness of the Fund’s management approach. For the Uninsured Vehicles Fund, profit growth reaches 109%, driven by investment and recovery (recourse) activities, as well as preventive actions aimed at reducing both the number and the size of claims paid.

“The achieved results are the outcome of a consistent and responsible management approach. We work with care both for the funds we manage and for the people they are intended to serve,” said Maksim Kolev, Chairman and Chief Executive Officer of the Guarantee Fund.