The European Insurance and Occupational Pensions Authority (EIOPA) asked insurers on Thursday 2 April to temporarily suspend dividend payments and share buybacks in order to be able to bear the repercussions of the economic crisis triggered by the COVID-19 outbreak.
“Taking due account of the current level of uncertainty on the depth, magnitude and duration of the impacts of COVID-19 in financial markets and on the economy, EIOPA urges (re)insurers to temporarily suspend all discretionary dividend distributions and share buy backs aimed at remunerating shareholders”, the Authority said.
This statement is in line with the recommendations made for banks by the European Central Bank and the European Banking Authority.
“This suspension should be reviewed as the financial and economic impact of the COVID-19 starts to become clearer”, the EIOPA specified and also called for a deferral of variable pay.
See the statement: https://bit.ly/2wZczWU (Original version in French by Marion Fontana)