New recommendation on dividends for banks, insurance companies, mutual funds, pension funds and brokerage houses were published by the KNF, Poland’s financial supervision authority.
Recommendations are not binding law, but are an example of "soft law". Nevertheless, the general convention is for financial institutions to follow them.
The recommendations include five criteria which, if met, would permit insurance companies to pay out up to 75% of their 2012 profits, but only if their capital requirements coverage ratio is maintained at a level of at least 110% after the payment of dividends.
Other criteria are recommended which, if met, would permit insurance companies to pay out up to 100% of the profit earned in 2012. If an insurance company does not meet the five criteria referred to above, it should not pay any dividend at all.