Triglav Proposed DPS of EUR 2.5

At the current share price, the dividend yield is 7.3%.

After the meeting of the Supervisory Board held on the 28 of March 2018 Triglav released a statement in which they propose a DPS of EUR 2.5. This amounts to a total dividend payment of EUR 56.8m which represents a 70.3% payout ratio. The proposed payment gives a dividend yield of 7.3% in relation to the closing price of EUR 34.1 per share a day prior the announcement of the proposal.

Looking at the 2014-2019 period, Triglav was paying out a steady dividend of EUR 2.5 per share according to their dividend policy. The minimum dividend payout set by Triglav’s dividend policy is 50% of the consolidated net profit for the previous year. However, Triglav has been surpassing the minimum payout ratio every year since 2013 as it aims not to reduce its dividend payment below the level of the previous year.

Dividend Per Share (2014 – 2019) (EUR)
Dividend Yield (2014 – 2019) (%)*

*compared to the share price a day before the dividend proposal

Since Triglav raised its DPS to 2.5 in 2015 dividend yields have been steady at 9%-10% before decreasing to 7.9% in 2018 and amounting to 7.3% in 2019. This can be attributed to the company’s share price which went over the EUR 30 per share since the beginning of 2018 and its average price since then until today amounts to EUR 31.2 per share. The price has peaked at the beginning of March this year at level of EUR 35.4 per share and currently stands close to its highest level.

In 2018 Triglav’s GWP went up 7% (from EUR 999.9m to EUR 1068.4m) as premiums grew across markets (Slovenia +7.0%, Other markets +8%) and segments (Non-life +8%, Life & Pension +2%, Health +11%). This has resulted in 32% growth of PBT from underwriting. PBT from investments has decreased by 29% caused by continuation of low-yield environment. It was partly offset by EUR 4.3m one-off net profit before tax from non-insurance operations. Net profit growth was also influenced by favourable claims ratio and moderate growth of operating costs (+5.8%). Triglav’s 2018 net profit increased by 16% YoY (from EUR 69.7m to EUR 80.8m). Therefore, Triglav’s net profits has revisited the level of above EUR 80m last time observed in the period from 2014 to 2016. This was period when exceptionally high income from investments was observed and maximum was seen in 2015 when net investment income has reached EUR 176m.

Category : Flash News

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