At the current share price dividend yield is 5.7%.

Sava Re published an announcement on the LJSE stating that they have received a counterproposal from VZMD (Pan-Slovenian Shareholders’ Association) regarding the profit distribution. To be specific, VZMD proposes EUR 20,14m to be appropriated for dividends, which translates into a dividend of EUR 1.3 per share.

At the current share price dividend yield is 5.7%.

VZMD stated that they believe that it is proper and desirable that the company allocate the majority of its distributable profit for distribution. VZMD believes that the company is capable of paying such a dividend to its shareholders without adverse impacts or otherwise impeding its plans.

In 2019, Sava Re grew its distributable and net profit year on year; nevertheless, it paid no dividends in 2020, contrary to the assurances given by the company’s representatives in general meetings over the past years as well as the company’s adopted dividend policy of increasing dividends by 10% annually. In addition, Sava Re has set itself a goal that in the period 2020–2022, it would annually distribute between 35% and 45% of the net profit of the Sava Insurance Group. The amount proposed for distribution represents just over 35% of the Group’s net profit.

The management board of Sava Re, on the other hand opposes the proposal of VZMD regarding the payment of a dividend of EUR 1.3 gross per share because it believes that the proposal of the management and supervisory boards, which is in line with the recommendations of the Insurance Supervision Agency, is appropriate. As a reminder, the management of the company proposed EUR 0.85 per share.

We deem that such a counterproposal will not likely be materialized given that the Management Board’s proposal is based on the Agency’s strictest criterion, by which the dividend must not exceed the average dividend paid in the period 2017–2019, which is EUR 0.85 per share.