Direct Line Group ('DLG' or the 'Group') notes the guidance in the Prudential Regulation Authority's (PRA) letter of 31 March, which requested that insurance companies remain prudent in their approach to dividends. In addition, it also notes the EIOPA1 statement of 2 April 2020 which urged insurers to temporarily suspend all discretionary dividend distributions and said that this suspension should be reviewed as the economic impact of Covid-19 starts to become clearer.
Notwithstanding the Group's strong capital position, in recognition of the regulatory guidance and heightened uncertainty in the macroeconomic environment, the Board has decided it will no longer be recommending to shareholders the final dividend for the year ended 31 December 2019. Acknowledging the importance of dividends to shareholders the Board will review this position alongside half year results and on an ongoing basis once it is possible to have a better understanding of the impacts of Covid-19 on customers and the business. Meanwhile, the resolution for the final dividend will be withdrawn from the Annual General Meeting.
https://www.investegate.co.uk/direct-li ... 00051366J/