Biggest insurer in Romania pays dividends against regulator’s recommendation
City Insurance, the biggest insurance company in Romania by gross premiums underwritten in 2019, will pay dividends worth RON 15 mln (EUR 3.1 mln) to its shareholders from last year’s net profit.
Andrei Chirileasa · Journalist
· Updated · 1 min read
City Insurance, the biggest insurance company in Romania by gross premiums underwritten in 2019, will pay dividends worth RON 15 mln (EUR 3.1 mln) to its shareholders from last year’s net profit.
The company recorded a net profit of RON 41.9 mln (EUR 8.67 mln) in 2019.
Its shareholders approved the dividends in July.
The Financial Supervisory Authority (ASF) adopted in early July a set of recommendations for insurance companies for minimizing the effects of the COVID-19 pandemic.
One of the recommendations was that companies should avoid paying dividends at least by January 1, 2021, according to Profit.ro.
Vivendi International, fully-owned by local businessman Dan Odobescu, the brother in law of former prime minister Adrian Nastase, owns 85% of City Insurance. Odobescu will thus cash in dividends worth over EUR 2.6 mln.
(Photo: Adrian825/ Dreamstime)
