SAVA Re to pay dividend despite ISA's recommendations

31 August 2020 —
Slovene re/insurance group SAVA announced it intends to send a notification to the Insurance Supervision Agency declaring its intention to pay out dividends in respect of 2019.

On August 20th, the Slovene Insurance Supervision Agency sent a letter to all insurance, reinsurance and pension companies, recommending them to suspend the payment of dividends with the aim of ensuring financial stability during the COVID-19 epidemic. At the same time, Slove ISA noted that "if any of the supervised entities fails to comply with this recommendation, it is required to notify the Agency at least one month before the intended payment of dividends. In the notification, the supervised entity must justify its decision and reasons for it, both qualitatively and quantitatively, on previously performed reliable stress test results with precise stress test assumptions and calculations of impacts on assets, liabilities, available capital and capital adequacy of the supervised entity for at least until the end of 2024". Click here to read more.

Thus, in connection with the recommendation of the ISA, SAVA Re informs that, in line with the option and conditions set out in the recommendation, it intends to send a notification to the Agency declaring its intention to pay out dividends in respect of 2019, supported by qualitative and quantitative evidence: "As stated in the Recommendation, the Agency will examine such notification and take appropriate measures in accordance with the law. To the extent that the Agency has no reservations regarding such dividend distribution, the management board, subject to approval by the supervisory board, will call a general meeting to consider the proposed distribution of dividends so that dividends may still be paid out this year".