Slovenian ISA asks insurers to suspend dividend payments until 30 September 2021

8 March 2021 —
Due to the uncertain situation regarding the spread of the COVID-19 pandemic and the consequent unclear impacts on the economy and the insurance industry, last week, Slovenian Insurance Supervision Agency asked the supervised entities to suspend dividend payments.

Thus, the Agency expects that until 30 September 2021 insurance, reinsurance and pension companies suspend dividend payments and undertake no irrevocable commitments to pay out dividends. The Agency exceptionally allows any of the supervised entities not to comply with this recommendation.

"The supervised entity that will not comply with the Agency's recommendation is required to notify the Agency at least one month before the intended payment of dividends. In the notification, the supervised entity must demonstrate to the Agency that the precautionary principle has been complied with when making its decision". Click here to read the letter.

In March 2020, the Insurance Supervision Agency sent a similar letter to all (re)insurance and pension companies expressing its expectations regarding temporary suspension of dividend payment until at least 1 October 2020. More details here. At that time, the two largest Slovianian Re/Insurance Groups - TRIGLAV and SAVA Re informed that following the recommendation they will temporarily suspend the dividend payments for 2019.