Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Italian insurer Generali confirms staggered dividend payout

Stock Markets Apr 10, 2020 12:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Generali logo is seen on the company's building in Milan, Italy
 
GASI
-2.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ALVG
-2.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AXAF
-2.48%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UNPI
-2.93%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US
-2.78%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gianluca Semeraro

MILAN (Reuters) - Italy's biggest insurer Generali (MI:GASI) on Friday said it would pay its 2019 dividend in two tranches, confirming a total payout of 0.96 euros per share, citing its strong capital position.

The announcement flies in the face of calls by industry regulator EIOPA for insurers and reinsurers in the European Union to suspend dividends and share buybacks and consider postponing bonuses to ensure continuity in services during the coronavirus pandemic.

Generali said it would pay a first tranche of 0.50 euros per share in May and that it plans to pay the remaining portion by the end of the year, subject to a board assessment of capital and regulatory requirements.

The company said it had taken EIOPA's recommendations into account and that its decision was consistent "with the fact that ... all of the conditions to proceed with the dividend distribution for 2019 continue to exist".

"Even if the final impact of the COVID-19 crisis is still uncertain, there is no reason to doubt the group's stability," it said, adding that its solvency ratio remains comfortably within the target operating range.

Germany's Allianz (DE:ALVG), the region's biggest insurer, told Reuters last week that it was in "good shape" and wanted to maintain both its dividend and a share buyback.

Generali's solvency ratio, a key measure of its financial strength, stood at 200% on March 6, compared with 224% at the end of 2019 - partly because of an acquisition in Portugal, but also because of falling prices for Italian government bonds.

The insurer held 63 billion euros ($68 billion) in Italian bonds at the end of 2019.

Italian bonds have been hit as the coronavirus crisis and a nationwide lockdown aimed at stemming contagion rock the economy, forcing the government to ramp up spending.

Generali also announced voluntary pay cuts at management level.

Chief Executive Philippe Donnet, the members of the group's management committee and other executives with strategic responsibilities have decided to reduce their fixed salary by 20% for the remainder of the year, the company said.

France's biggest insurer AXA (PA:AXAF) has postponed its annual meeting to allow time for discussions with European regulators, though draft resolutions to pay a dividend remain unchanged.

Generali's smaller domestic rival UnipolSai (MI:US) last week said that it would pay its planned dividend on 2019 results while parent company Unipol Gruppo (MI:UNPI) suspended its own dividend payment.

($1 = 0.9205 euros)

Italian insurer Generali confirms staggered dividend payout
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email