Dividend policy

The dividend policy of Zavarovalnica Triglav is based on the Triglav Group’s target capital adequacy, which is the foundation of safety of its operations. The policy takes into account not only the planned volume of business and the related foreseen capital needs in the Slovene and other strategic markets but also the guidelines and good practices of the insurance sector. The basis for the dividend payment is a sufficient amount of accumulated profit of Zavarovalnica Triglav for the year. 

The dividend policy was revised in line with the Solvency II system, which came into effect on 1 January 2016. Moreover, its guidelines were defined in greater detail, as explained under Section The Triglav Group Strategy for the 20132017 period. In accordance with the solvency capital requirement (SCR), the target capital adequacy of the Group varies between 250% and 300%. Should the Company achieve the target capital adequacy, the Management Board and the Supervisory Board will, as a rule, propose a dividend payment in the amount of 30–50% of consolidated net profit of the Triglav Group. 

Should the capital adequacy of the Triglav Group be less than 250%, the Management Board and the Supervisory Board will, as a rule, propose a payment of a lower proportion of dividend or non-payment of dividends. The capital adequacy of the Group exceeding the target level allows the Management Board and the Supervisory Board to draw up a proposal for a larger share of dividend payment.  

The guidelines for the dividend payment in relation to the capital adequacy level are shown in Figure under Section Capital and Capital Adequacy Management of the Risk Management Section.

Overview of dividend payments for the business years 2012–2015

Items

2015

2014

2013

2012

Total dividends (In EUR)

to be defined

56,837,870

38,649,753

45,470,297

Dividends per share (in EUR)

to be defined

2.50

1.70

2.00

General Meetings of Shareholders

31 May 2016

9 June 2015

10 June 2014

11 June 2013

Earnings per share (in EUR)

2.57

2.01

2.12

2.22

Zavarovalnica Triglav paid dividends for 2014 in the amount of EUR 58,837,870.00, which was 67% of the net profit of the Triglav Group generated in that year. The dividend in the amount of EUR 2.5 gross per share consisted of a dividend which was in line with the dividend policy (EUR 1.25 gross per share) and an additional extraordinary dividend (EUR 1.25 gross per share). The payment of the extraordinary dividend was made possible by the available capital of the Group, excellent business performance and the level of realised key strategic guidelines of the Group in recent years.