Vátryggingafélags Íslands hf.'s board has recommended changes to the company's capital structure, including lowering the equity ratio.
If the company moves forward with the changes, its equity ratio will be between 25% and 28% after three to five years. The changes are aimed at making the Icelandic insurance company more in line with Nordic insurance companies, which generally have lower equity and higher solvency ratios, according to a press release.
The capital structure adjustment is subject to approval at a shareholders' meeting, which may be held before the end of the second quarter. It is also subject to the approval of the Financial Supervisory Authority.