Despite his military background, Andronikos failed to deal with Isaac Komnenos, Béla III of Hungary (r. 1172–1196) who reincorporated Croatian territories into Hungary, and Stephen Nemanja of Serbia (r. 1166–1196) who declared his independence from the Byzantine Empire. Yet, none of these troubles would compare to William II of Sicily's (r. 1166–1189) invasion force of 300 ships and 80,000 men, arriving in 1185. Andronikos mobilized a small fleet of 100 ships to defend the capital, but other than that he was indifferent to the populace.
The reign of Isaac II, and more so that of his brother Alexios III, saw the collapse of what remained of the centralized machinery of Byzantine government and defense. Although the Normans were driven out of Greece, in 1185 the Vlachs and Bulgars began a rebellion that led to the formation of the Second Bulgarian Empire. The internal policy of the Angeloi was characterized by the squandering of the public treasure and fiscal maladministration. Imperial authority was severely weakened, and the growing power vacuum at the center of the Empire encouraged fragmentation.