Poland will allow dividend payments of up to 75% of 2017 profits for insurers meeting a set of regulatory and solvency ratings and will extend the cap to 100% for extra-solvent insurers who will show an excess surplus of capital even after dividend payment, the financial regulator – KNF said.
Solvency requirements were maintained at the same level as last year. To pay out up to 75% of 2017 profit, insurers must have a 2016 Supervisory Review and Evaluation Process (BION) rating of „1” or „2,” cannot have suffered any shortages of own means for covering capital requirements in any quarter of 2017, cannot have been under a recovery program, and who end 2017 with solvency at or above 175% in life and 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 2017 profits if, adjusted for dividend payment, their end-2017 solvency and dividend payment quarter solvency would still beat 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 2017 financial report, KNF also said.
