Menora Insurances Holdings Set its distribution policy yesterday (Sunday) Dividend To its shareholders. Under the new policy, the rate will be at least 35% of the distributable profit – the highest rate in the insurance industry. This is after you have not set a policy in the group regarding the dividend distribution rate. Currently, Clal Insurance and Migdal do not currently have a dividend distribution policy, while Harel announced last February a policy according to which a dividend of at least 30% of the annual total profit will be distributed. Phoenix Holdings policy also stands at 30% and was the first to approve a fixed policy towards the end of last year.
A few months ago, the insurance companies published their results in compliance with the solvency regime (according to Solvency Policy 2) for 2020. According to the results, Menora Mivtachim Insurance has the highest solvency compared to the five largest companies in the industry with a capital ratio of 139%. Greatest dividend distribution capacity. As of the end of 2020, Menora Mivtachim Insurance and Shomera have a capital surplus of approximately NIS 1.75 billion.
In 2021, Menora Mivtachim distributed a dividend of NIS 342 million, which consists of a dividend of NIS 100 million paid in March and a NIS 242 million dividend in kind in which the shares of Traleit were transferred in September.
According to the dividend distribution policy just approved by the Board of Directors, the dividend will be distributed as long as the distribution does not adversely affect the Company’s cash flow needs in aspects such as compliance with the applicable legal provisions, compliance with capital requirements of institutional entities, compliance with liabilities The budget or business plan.
A decision on the distribution of dividends in accordance with the new policy will be made once a year or at any other date determined by the Board of Directors, on the basis of financial statements and at the discretion of the Board of Directors. In addition, the Company’s Board of Directors will be entitled, at any time, to change the dividend rate distributed or decide not to distribute it at all, taking into account business and financial considerations, cash flow needs, investment plans, business plans, rating considerations and the like.
Menora Mivtachim further clarified that the Board of Directors will be entitled to review the dividend distribution policy from time to time and that the new policy should not be considered an undertaking by the Company to make a dividend distribution.