Restrictions on Insurance Companies in Croatia due to COVID-19 and Recent Earthquakes

wallet

Restrictions on Insurance Companies in Croatia due to COVID-19 and Recent Earthquakes

Croatian Financial Services Supervisory Agency (HANFA) has reached a decision under which insurance companies in the Republic of Croatia and one pension insurance fund are forbidden from making dividend payments from profit earned in 2019, as well as profit earned in previous years. The decision entered into force on 26 March 2020 and will remain in force until 30 April 2021, or longer, if deemed necessary.

In accordance with the decision concerned, the insurance companies will retain around HRK 4 billion of profit in their balance sheets.

The reasons for such a decision are the current extraordinary circumstances caused by the C-19 pandemic as well as recent earthquakes in Zagreb, whereas its purpose is to strengthen insurance companies’ liquidity, ensure their stable business operations and maintain stability of the entire financial system.

Croatian Financial Services Supervisory Agency (HANFA) has reached a decision under which insurance companies in the Republic of Croatia and one pension insurance fund are forbidden from making dividend payments from profit earned in 2019, as well as profit earned in previous years. The decision entered into force on 26 March 2020 and will remain in force until 30 April 2021, or longer, if deemed necessary.

In accordance with the decision concerned, the insurance companies will retain around HRK 4 billion of profit in their balance sheets.

The reasons for such a decision are the current extraordinary circumstances caused by the C-19 pandemic as well as recent earthquakes in Zagreb, whereas its purpose is to strengthen insurance companies’ liquidity, ensure their stable business operations and maintain stability of the entire financial system.