April 2 (SeeNews) - Slovenia's insurance market regulator has advised local insurers to put on hold any dividend distribution decisions and plans as a liquidity safeguard measure amid the ongoing coronavirus crisis, Sava Re [LJE:POSR] and Zavarovalnica Triglav [LJE:ZVTG] said.
"Sava Re informs the public that on 31 March 2020 it received a letter from the Slovenian Insurance Supervision Agency recommending that insurance, reinsurance and pension companies temporarily suspend dividend payments and refrain from making any irrevocable commitments to pay dividends," the insurer said in a statement with the Ljubljana bourse on Wednesday.
Thew regulator believes that through this temporary measure, in force until 1 October 2020, insurance companies will increase their resilience to the financial shock resulting from the consequences of the COVID-19 epidemic, maintain financial stability and prevent any potential business disruptions, Sava Re noted.
It added that even though it had estimated it was capable of meeting its dividend policy and paying a dividend for 2019, its management will now propose that Sava Re acts in line with the regulator's recommendation.
In a separate statement with the Ljubljana bourse, Zavarovalnica Triglav said on Wednesday it has also been advised by the insurance agency to refrain from dividend payments.
"In accordance with the requirement, the Management Board will take a position within three business days as well as transparently notify the shareholders and the general public thereof," Zavarovalnica Triglav said.
Zavarovalnica Triglav shares closed 1.14% lower at 26 euro ($28.5) on Wednesday, while Sava Re shares lost 1.39% to 14.20 euro. They did not trade at opening on Thursday.
($=0.913610 euro)
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