Polish financial watchdog allows insurers to pay dividend of up to 100 percent of profits for 2025

Poland's financial market regulator KNF has adopted a position paper on the dividend policy, under which it allowed insurance companies to allocate up to 100% of profit earned in 2024 (including dividends paid to date from 2024 profit) and up to 100% of profit earned in 2025 for dividend payments if they meet the criteria put forth by the watchdog, the KNF said in a statement.

“The KNF deems it necessary to adopt the following rules on the dividend policy of insurance companies, reinsurance companies, and insurance-and-reinsurance companies in 2025.

The undertakings may allocate up to 100% of profit earned in 2024 (including dividends paid to date from 2024 profit) and up to 100% of profit earned in 2025 for dividend payments if they meet the following criteria together.

A. They have received a good or satisfactory SREP (the Survey and Supervisory Assessment - MI ed.) risk score for 2024.

B. In the various quarters of 2025 they reported no shortage of own funds to cover the capital requirement – defined as the maximum of the minimum capital requirement (MCR) and the solvency capital requirement (SCR).

C. In 2025, they were not covered by a realistic recovery plan or a short-term realistic financial plan, (...)

D. The level of own funds net of expected dividends as of 31 December 2025 was above 175% of the capital requirements for undertakings operating in section I and above 150% of the capital requirements for undertakings operating in section II,” the statement reads.

Determination of the amount of dividends to be paid should take into account that coverage of capital requirements (after taking into account dividends planned to be paid in 2026) as of December 31, 2025, and for the quarter in which dividends are planned to be paid, should be at least 175% for undertakings operating in section I and at least 150% for undertakings operating in section II, the KNF added.

“When deciding on the level of dividends, the undertakings satisfying the outlined criteria should take into account their additional capital needs within the period of 12 months from the approval date of the 2025 financial statements,” the statement also reads.

pr/ tom/ pel/