Progressive deterioration of solvency

(1) In the event of a progressive deterioration in the solvency of an insurance undertaking, the supervisory authority may, in addition to the measures named in sections 134 and 135, take all measures that are suitable, necessary, and appropriate to safeguard the interests of policyholders arising from the insurance contracts, or to ensure fulfilment of the obligations under reinsurance contracts. In choosing the measure, the extent and duration of the deterioration in the solvency situation of the insurance undertaking must be taken into account.
(2) In particular, the supervisory authority may 1. require the provision of a higher amount of eligible own funds than is necessary to comply with the Solvency Capital Requirement, 2. prohibit or restrict withdrawals from reserves and the distribution of profits, 3. prohibit or restrict measures serving to offset an annual net loss or to show a balance sheet profit.