Triglav will heed the recommendation of the Insurance Supervisory agency and propose no dividend payment at the GSM.
Following up on the recommendation by the Insurance Supervision Agency for Slovenian Insurers to suspend dividend payments, Triglav issued a statement on the Ljubljana Stock Exchange.
In respect to the recommendation, the Management Board and the Supervisory Board of Triglav will propose at the GSM that accumulated profit, which amounted to EUR 60,54m at 31 December 2019, remain undistributed.
The Company notes that is not changing its dividend policy, which in a balanced way seeks to ensure the financial stability of Triglav Group, implement its growth and development strategy, and pay out attractive dividends to its shareholders. However, the Company understands the call of the regulator, which is responsible for the financial stability of the Slovene insurance sector, especially in a situation of great uncertainty caused by the pandemic. The call takes into account the recommendations and actions of EU regulators and authorities (EIOPA and IAIS) to ensure the solvency and capital adequacy of insurance companies in the EU.
As a reminder, Triglav has set the minimum dividend payout of 50% of consolidated net profit for the previous year, with the note that the company will not strive to reduce its dividend payment below the level of the previous year. Since 2015 (for net profit of the previous year), Triglav has been paying out a constant dividend of EUR 2.5 per share, which implied a high single digit dividend yield each year ranging from 7.3% to 9.5%. In order to see Triglav’s historic dividend’s click here.
