I write a RGB value for the colour by setting color to Color By Level where the rgb color is defined with the level definition in the Microstation seed drawing you are using in the dgn writer.

Hi @stevepratt ,
This sounds like a good solution for most cases, but for my case the color cannot be defined by the level. The color of objects within one specific level can vary.
Jasper
For anyone else that runs into this in the future, according to the DGNStyler doc under RGB Fill Colour, the RBG input colour may be stored as the color table index which most closely approximates it, where the color table is defined as a specific set of RGB colors in the seed file.
I've filed an enhancement request tracked internally as (FMEENGINE-73717) to ask for support for true colours in the DGN writer and will update here when it has been addressed.
In the meantime, if you're needing to preserve specific true colours, you will need to manipulate the colour table of the seed file to contain the colours you need. FME will then pick up those closest RBG values and assign the colour you're looking for.
You can modify existing colours in the colour table in Microstation by going to Settings > Color Table and selecting a colour to replace by clicking Change or double clicking it to set the RGB you want. You can then use this file as a seed file in the writer. This change only applies to this file and if you need to you can go to File > Default to revert any changes to the colour table.
I've filed an enhancement request tracked internally as (FMEENGINE-73717) to ask for support for true colours in the DGN writer and will update here when it has been addressed.
Is there any update on this? Thanks!
Hi @oscard,
I happy to confirm that the DGNStyler support for true colors enhancement has been delivered in 2023.0! This should be a feature for newer versions as well.
Hope this helps! If you had a different question or any other lingering ones, let me know 
Hi @oscard,
I happy to confirm that the DGNStyler support for true colors enhancement has been delivered in 2023.0! This should be a feature for newer versions as well.
Hope this helps! If you had a different question or any other lingering ones, let me know 
Does this mean the true colours are respected by the Writer, too? Because as far as I know, the DGNStyler has been allowing the creation of colours using RGB since a while ago, but then the DGN Writer instead of using the RGB colour it picked the closest one it knew.
I’m checking the docs of newer FME versions, but I can’t find clearly if a RGB colour will be respected by the Writer.