According to Eiopa, a prudent approach should also be applied to variable remuneration policies, i.e. dividends. If, then, the insurance companies consider themselves legally bound to pay dividends or large amounts of variable remuneration, they should explain their reasons to their national authorities.
A very harsh message that made the European insurance sector lose 4% during the April 3 session.
However, the response to Eiopa’s request has not been uniform among European insurance companies.
The French AXA has already announced that it has postponed the decision until 30 June. Unipol has announced that it has postponed the distribution of the coupon, while it has confirmed it for the subsidiary UnipolSAI. For its part, Allianz confirmed the coupon. After internal audits, in fact, it was able to demonstrate a solidity such as to justify the distribution of the dividend. At the end of the year the Solvency was equal to 212% and in the pay out policy it is already expected that the company will freeze any remuneration of the shareholders if the solidity index should be less than 160%.
Generali Assicurazioni, on the other hand, is still considering what to do. In this case, in fact, there are large sums that would go to Francesco Caltagirone and Leonardo Del Vecchio. Not to mention the 200 million euro dividend that Mediobanca would collect.
What to expect for the future of Allianz?
The Allianz share (MIL: ALV) closed the session on April 3 down by 1.41% to € 149.32 with a performance far above that of the European insurance sector.
The current trend on the monthly time frame is bearish, but having already reached the third price target in the € 122.483 area, the prices immediately started upwards. They are now in the vicinity of a very important resistance area € 155.659 – € 159.08. A monthly close above this area would trigger prices towards the next target in the area of € 179.611 and then € 242.135 and € 304.639.
On the downside, the landing point is always in the 120 € area.
Allianz: bearish projection in progress on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.
deepening
How will Unipol react to the decision to suspend the distribution of the dividend?
