IVASS recommends that undertakings use extreme caution in the distribution of dividends

Category

Undertakings

Description

The spread of COVID-19 epidemiological emergency is causing high volatility in international and European financial markets.

At domestic level, the spread of the pandemic and its related effects on the Italian economy make any forecast of the trend in the risks to which insurance companies are exposed extremely uncertain.

Given the changes in the economic and financial framework, IVASS has sent a letter to the insurance and reinsurance undertakings with head office in Italy requesting them to use extreme caution, at solo and group level, in the distribution of dividends and in the payment of the variable remuneration component of key managers.

IVASS will closely monitor compliance with these recommendations, which reflect those issued by EIOPA on 17 March 2020.

issue date

30 March 2020