The decisions about dividends of insurance companies they no longer have to allowtreatment discrepancy between companies” of the various countries. She said it Daniel Franco, president of the Insurance Supervisory Institute (IVASS), speaking at the 22nd Insurance Summit, organized by 24 Ore Eventi in collaboration with The Sun 24 hours. Franco indirectly responded to the remarks of Generali's CEO, Philippe Donnet, who during yesterday's Investor Day had complained about the fact that the insurance authorities of the various European countries moved in random order on dividend policy, creating distortions between businesses.
The request not to distribute dividends in 2020 came from the European Systemic Risk Committee (Esrb), which, as recalled by Franco, "on 27 May last year recommended to the supervisory authorities of banks and insurance companies not to undertake, at least until 2021 January XNUMX, actions that could lead to a reduction of its capital endowment", so as to "strengthen the balance sheet of financial companies in a very difficult moment for the European economy”.
For this reason, "in 2020 less than a third of Italian companies distributed dividends – said the number one of IVASS – and all the distributions took place before the Esrb recommendation”.
At European Union level, however, the share of insurance companies that paid dividends rises to just under half and in some cases the payments arrived even after 27 May.
“This discrepancy – explained Franco – derives from the fact that, unlike the banking sector, where there is a single supervision at the level of the euro area, for the insurance sector the convergence of supervisory practices can only be achieved through coordination between national supervisors through participation in European institutions. This proved to be a weakness when, having issued specific recommendations, supervisors across countries followed up on these recommendations unevenly".
What can we expect for next year? “The future of the Esrb Recommendation is being examined and debated at a European level – concluded Franco – A decision will be taken by the end of the year in relation, again, to the economic and financial situation at a European level. I'm just pointing out that for for us at IVASS it is important, it is essential that differences in treatment between insurance companies in the various countries are not repeated. IVASS will undertake to do so”.
On the same topic, read also:
– Insurance dividends: until when will they be frozen?
