Insurance companies meeting the Polish Financial Supervision Authority's solvency and capital requirements will be allowed to earmark up to 75% of their 2017 net profits for dividend payments, news agency PAP reported Dec. 5, citing the annual financial sector guidelines issued by the regulator.
The 75% dividend option will be available for insurers that did not show any shortage of own funds to cover capital requirements and were not subject to a financial recovery program, among other things. Such insurers will also need capital-requirements coverage of at least 110% for the quarter in which the dividend will be paid, the news report noted.
Very solvent insurers will be able to pay up to 100% of their profits to shareholders if their coverage of capital requirements — after deducting funds for dividend payments — is at least 175% of the required capital levels for life insurers and at least at 150% for nonlife insurers at the end of 2017 and for the quarter in which the dividend will be paid.
When deciding on the size of their dividends, insurers should also take into account their additional capital needs in the 12 months after approving their 2017 financial reports, PAP cited the regulator as saying.