Fiva’s decision is based on an improvement in the financial situation and a reduction in uncertainty.
Financial supervision (Fiva) announced on Monday that it will no longer continue its recommendation to insurance companies to refrain from profit distribution and variable remuneration.
According to the Financial Supervision Authority, its decision is based on the improvement of the financial situation and the reduction of uncertainty.
The decision took into account a similar decision taken by the European Central Bank (ECB) at the end of July not to pursue the recommendation to limit the distribution of credit institutions’ profits from the end of September.
The Financial Supervision Authority says that it expects that insurance companies will continue to take into account the risks caused by the prolongation of the interest rate pandemic when planning and operating dividends. Companies should assess the need for capital, the sustainability of their business models and the risks involved.
.
