Insurer Croatia Osiguranje proposes to distribute 65 mln euro in dividend

The management board believes that the payment of dividend to its shareholders is possible without disrupting the stability of operations and maintaining a high level of capital adequacy, it said in a filing to the Zagreb bourse.

Capital adequacy as of the end of September for the parent company was 337%, or 293% at the consolidated level of the Croatia Osiguranje insurance group, and although a slight reduction of these ratios is expected at the end of 2023 due to the effects of deferred taxes, capital adequacy is expected remain very high - at above 300% at the parent company level and above 270% on a consolidated level, it added.

Following the announcement of the planned dividend, the company’s ordinary shares surged 33.33% to 1,200 euro and were the biggest daily gainer on the Zagreb bourse by 1257 local time on Friday.

The company last paid dividend on ordinary shares, of 11.95 euro per share, in 2011, bourse data showed.

Its preferred shares last traded on January 3, ending 3.23% lower at 900 euro. The company paid a divided of 14.86 euro per preferred share last year.

($ = 0.919 euro)