The Management Board and the Supervisory Board of Zavarovalnica Triglav will propose to this year's General Meeting of Shareholders that part of accumulated profit be distributed for dividend payment, unless the Insurance Supervision Agency opposes this proposal by the time the General Meeting of Shareholders is convened. Due to the uncertain consequences of the pandemic for the economy, the Insurance Supervision Agency expects insurance companies to suspend dividend payments until the end of September this year, unless they demonstrate guaranteed solvency, sufficient liquidity and profitability in compliance with the precautionary principle. Both the Management Board and the Supervisory Board assess that the bases for the dividend payment are appropriate and thus, in accordance with the Company’s dividend policy, propose a dividend of EUR 1.70 gross per share. The total amount of dividends of EUR 38,649,751.60 will represent 53% of the Company’s consolidated net profit for 2020 and a 5% dividend yield.
The Management Board and the Supervisory Board propose to this year's General Meeting of Shareholders to pay a dividend of EUR 1.70 gross per share (in the total amount of EUR 38,649,751.60) or 53% of consolidated net profit for 2020, which is in line with the dividend policy. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “We are pleased to be able to again propose a payment of dividends to our shareholders. We have developed a dividend policy, which is attractive for the shareholders and sustainable for the development and growth of Triglav Group. We aim to implement it as such, while acting in compliance with the positions of the Insurance Supervision Agency. The proposal of the Management Board and the Supervisory Board has taken all of the above into account.”
In accordance with the law, shareholders will decide on the distribution of the Company’s accumulated profit as at 31 December 2020, which also includes net profit brought forward from the previous year. The Management Board and the Supervisory Board formulated a proposal for the dividend payment in accordance with the dividend policy. They believe that the proposal will continue to ensure the financial stability of Triglav Group and its target growth and development, while ensuring a 5% dividend yield to the shareholders, which is one third more than the average of the European insurance sector. Their proposal took into account the expectations of the Insurance Supervision Agency that the dividend payment be suspended until the end of September this year, but exceptions are allowed if an insurance company demonstrates compliance with the precautionary principle in terms of solvency, liquidity and profitability.
The Company is expected to announce the convening of the regular General Meeting of Shareholders on 22 April 2021, scheduled to take place on 25 May 2021. The Company will take into account the situation as well as the guidelines and measures adopted by competent institutions.