At the current share price, dividend yield is 6.4%. Ex-date is 30 November 2020.

Sava Re published the invitation to the general meeting of shareholders which will be held on 16 November 2020 in which the shareholders will be deciding on the appropriation of distributable profit for 2019.

The company proposed EUR 16.27m (of distributable profit of EUR 34.7m) to be paid out as dividends, which translates into a dividend per share of EUR 1.05. At the current share price, dividend yield is 6.4%. We note that such a dividend is in line with our expectations. The dividend proposal was yesterday welcomed by the market, as Sava Re’s share price increased by 4.24% to EUR 17.1 per share.

Note that the ex-date is 30 November 2020.

Sava Insurance Group’s strategic plan for 2020 – 2022 states that the company will ensure its shareholders stable growth in dividends (on average by 10% annually) therefore distributing between 35% and 45% of Sava Insurance Group’s profits.

As a reminder, Insurance Supervision Agency, has given recommendation to insurers on 20 August on suspension of dividends after 1 October 2020 due to deeming the situations in relation to Covid-19 and its impact on the economy and the insurance sector as still uncertain. This recommendation was published by Sava Re on 21 August 2020.

In August, Sava Re announced the intention to pay dividend is in line with the option and conditions set out in the regulator’s recommendation. As stated in the recommendation, the regulator will examine such notification and take appropriate measures in accordance with the law. Back than the company stated that to the extent that the Agency has no reservations regarding such dividend distribution, the management board, subject to approval by the supervisory board, will call a general meeting to consider the proposed distribution of dividends so that dividends may still be paid out this year.

Dividend per Share (EUR) and Dividend Yield (%) (2014 – 2020)