Business news

Insurers soon free of restrictions on profit distribution

Ljubljana, 08 September (STA) - Slovenian insurance companies will be free of restrictions on the distribution of profit after the Agency for Insurance Supervision decided not to extend beyond September a macroprudential measure that severely curtailed payouts.

The decision was made after a review of insurance and pension companies' interim results and against the backdrop of improved economic indicators, the agency said on Wednesday.

It said capital adequacy in the sector was high and stress tests showed insurers were resilient.

Nevertheless, the watchdog will keep an eye on individual profit distribution plans and expects insurers will remain cautious.

The two biggest insurers in the country, Zavarovalnica Triglav and Sava Re, earlier this year paid out dividends amounting to roughly half their distributable profit and have room to pay additional dividends.