The Polish Financial Supervision Authority has allowed payments of dividends up to 75% of 2018 profits for insurers which meet 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.
The 2018 dividend for up to 75% payout criteria for insurers:
- not subject to a recovery program in 2018
- end-2017 Supervisory Review and Evaluation Process (BION) rating of „1” or „2”
- no shortages of own means for covering capital requirements in any quarter of 2018
- end-2018 solvency at or above 175% in life and 150% in non-life.
These insurers will also have to sport capital requirements coverage of at least 110% in the quarter of the dividend payment.
High solvency insurers can pay up to 100% of 2018 profits if, adjusted for dividend payment, their end-2018 solvency and dividend payment quarter solvency would still at least meet the 175% (life insurance) and 150% (non-life insurance).
Insurers are also asked to take into account their additional capital needs in the coming 12 months from adoption of the 2018 financial report, KNF said in its announcement.
