LJUBLJANA (Slovenia), April 6 (SeeNews) - Slovenia's Zavarovalnica Triglav [LJE:ZVTG] said it plans to pay no dividend in 2020, in line with the local insurance market regulator's advice to put on hold any dividend distribution decisions as a liquidity safeguard measure amidst the coronavirus crisis.
Triglav's management and supervisory boards will propose to its shareholders to leave undistributed the 60.5 million euro ($65.4 million) profit accumulated as of end-2019, the company said in a statement with the Ljubljana bourse on Friday.
"The Company is not changing its dividend policy, which in a balanced way seeks to ensure the financial stability of Triglav Group, implement its growth and development strategy, and pay out attractive dividends to its shareholders. However, the Company understands the call of the regulator, which is responsible for the financial stability of the Slovene insurance sector, especially in a situation of great uncertainty caused by the pandemic," Triglav added.
Last week, Triglav and its local peer Sava Re said that the Slovenian Insurance Supervision Agency had recommended that insurance, reinsurance and pension companies temporarily suspend dividend payments and refrain from making any irrevocable commitments to pay dividends until October 1, 2020, in order to increase their resilience to the financial shock resulting from the consequences of the COVID-19 epidemic, and prevent any potential business disruptions.
Last year, Triglav paid out a gross dividend of 2.50 euro per share, distributing to shareholders 56.8 million euro out of its profit of 66.8 million euro profit accumulated as of end-2018.
Triglav has reported that its net profit rose 4% to 84 million euro in 2019, while its total written premiums increased 11% to 1.18 billion euro.
The company's shares traded at 25.90 euro by 10:50 CET on Monday on the Ljubljana bourse, after closing 2.0% lower at 24.50 euro on Friday.
Zavarovalnica Triglav d.d. is among the biggest insurers in SEE, for more reference take a look at Top 100 insurers