Insurers ASR and NN will not pay a dividend for the time being due to the outbreak of the corona virus, both companies said on Monday in a press release. De Nederlandsche Bank (DNB) earlier called on insurers to cancel the dividend payment in order to strengthen the financial buffers.
NN and ASR both expect to discuss the 2019 dividend payment at a shareholders' meeting in the second half of 2020. Insurer Aegon already preceded the two companies with postponing the dividend payment last week.
DNB and the European insurance authority EIOPA called on Friday insurers to temporarily suspend dividend payments so as not to weaken the financial buffers with the payment.
"The impact of the corona virus on the economy is great, but the magnitude and duration of the crisis are still uncertain. That means that it is not yet possible to properly estimate the extent to which the buffers of insurers will be hit," said the DNB.
Earlier, the central bank, together with the European Central Bank, made the same appeal to banks to postpone dividend payments. This was followed up en masse: major banks ING, ABN AMRO and Rabobank all announced that they would not pay a dividend for the time being.
See also: Why do companies cancel the profit distribution for shareholders?