Achmea proposes a capital distribution of €169 million
Achmea B.V. (‘Achmea’) proposes to distribute capital to shareholders following the results of 2019. Achmea had previously followed the call from the Dutch Central Bank and EIOPA (European Insurance and Occupational Pensions Authority) not to pay dividends until there was greater clarity on the impact of Covid-19. At the time, Achmea noted that during the second half of 2020 it would determine whether it could make a distribution on the shares. Achmea has now published its interim results which present a healthy liquidity position and a robust solvency ratio of 204%.
In early July, the Dutch Central Bank decided to resume assessing proposed dividend distributions by insurance companies in the regular way. Following this, and prompted by the interim results, liquidity position and solvency ratio, Achmea now proposes to distribute capital. The Executive Board will recommend that the General Meeting to be held on 29 September 2020 makes:
- a distribution of 5.5%, totalling €19.6 million, on the amount paid-up on preference shares;
- a distribution of €149.7 million on the ordinary shares.
Achmea is the cooperative parent company of, among others, Centraal Beheer, Interpolis en Zilveren Kruis. In accordance with the dividend policy, the above proposal has been calculated on 45% of Achmea’s net profit in 2019 excluding the net results of the Health segment and after deduction of fees on other equity instruments.
The proposed distribution is expected to have a negative impact of 4 percentage points on Achmea’s Group solvency position.