The Polish Financial Supervision Authority has allowed dividend payments of up to 75% of 2019 profits for insurers meeting a set of regulatory and solvency ratings and will extend the cap to 100% for extra-solvent insurers who show an excess surplus of capital even after dividend payment.
Dividend payout criteria for insurers for up to 75% payout:
- end-2018 Supervisory Review and Evaluation Process (BION) rating of „1” or „2”
- no shortages of own means for covering capital requirements (MCR, SCR) in any quarter of 2019
- not subject to a short-term financial plan or a recovery program in 2019
- end-2019 solvency at or above 175% in life and at or above 150% in non-life
These insurers will also have to sport a capital requirements coverage of at least 110% in the quarter of the dividend payment.
High solvency insurers can pay up to 100% of 2019 profits if, adjusted for dividend payment, their end-2019 solvency and dividend payment quarter solvency would still at least meet the 175% (life) and 150% (P&C).
Insurers are also asked to take into account their additional capital needs in the coming 12 months from adoption of the 2019 financial report.
