10/11/2021 | Press release | Distributed by Public on 10/10/2021 22:50
The Financial Supervision Authority (FIN-FSA) will no longer maintain its recommendation for insurance companies on dividend distributions. The recommendation will end with regard to both dividend distributions and variable remuneration.
The FIN-FSA's decision takes into account the statement issued by the European Insurance and Occupational Pensions Authority (EIOPA) on 18 December 2020 and the decision of the European Central Bank (ECB) of 23 July 2021 not to extend its recommendation to limit the dividend distributions of credit institutions beyond 30 September 2021. The FIN-FSA's decision is based on the fact that the economic situation has improved and uncertainty has therefore decreased. In line with the ECB's policy, EIOPA will no longer maintain to its position that insurance companies refrain from dividend distributions.
The FIN-FSA expects insurance companies to continue to take into account the risks caused by the prolongation of the coronavirus pandemic when planning dividend distributions and otherwise in their operations. When planning dividend distributions and granting variable remuneration, insurance companies must carefully assess the need for capital, the sustainability of their business models and the risks involved in their operations.
Niina Bergring, Head of Division, telephone +358 9 183 5054 or niina.bergring(at)fiva.fi