One group, two opposing decisions. After the banks it's up to the insurers to make a decision on dividends. Due to the Coronavirus emergency, on 31 March, IVASS officially asked the companies to "adopt, individually and as a group, extreme prudence in the distribution of dividends and in the payment of the variable component of the remuneration to company representatives”. “Compliance with these recommendations, which are in line with those issued by EIOPA on 17 March – continued the supervisory institute -, will be subject to close monitoring by the Institute”. An explicit request which, however, leaves the groups more freedom than the recommendations made by the ECB and Bank of Italy to banks.
Three days after the warning launched by IVASS, the first decisions arrive: Unipol has decided to suspend the disbursement of the dividend of 28 cents and wait for the coronavirus tsunami to subside. The Bologna holding company "while noting that - as at today's date, as well as last March 19 - all the conditions continue to exist, including capital strength ratios, to proceed with the distribution of the dividend" has chosen to "strictly comply with the requests of the 'Ivass, therefore suspending the proposal to distribute said dividend and to propose to the shareholders' meeting (next 30 April, ed) the allocation of the 2019 profit to reserve". Thanks to this decision, the consolidated solvency ratio will go from 182% to 187%, with excess capital of €3,7 billion. As happened for banking institutions, Unipol also left hope for the future, reserving the right to call a new meeting "by 2020". Also stop bonuses for executives, including the variable remuneration that should have gone to the Chief Executive Officer.
For Unipolsai, on the other hand, a different path was chosen. The company will pay 452 million in dividends. A large part of this figure - 372 million - will end up in the coffers of Unipol which holds 82,17% of the shares. The decision "was also taken in consideration of the high capital solidity of the company (at 31 December 2019, the individual Solvency ratio is equal to 284%, with excess capital of approximately Euro 5,3 billion, already deducted the 2019 dividend), which places it at the highest national levels".
The different choices regarding the two companies are also reflected in the different stock market performances. In Piazza Affari, Unipol shares drop 3,4% to €3,074, while the Unipolsai price rose by 0,7% to €2,22.
As for the other companies, we remind you that Cattolica Insurance, even before the recommendations of IVASS, had decided to postpone the resolution on the coupon. The focus is now on Generali, which has already approved the disbursement of a dividend of 96 cents per share and whose shareholders' meeting will meet on April 30th. There are three possible decisions: taking time by postponing the resolution on the coupon, postponing payment to next autumn or deciding to distribute anyway.
