The distribution in Topdanmark in the period 1998 to 2017 was in the shape of share buybacks. During this period, it was decided to cancel own shares corresponding to 78.17% of the share capital. At the Annual General Meeting in 2017, it was decided that Topdanmark will discontinue the share buybacks and instead transfer to distribution via dividend.
Topdanmark is one of the largest insurance companies in Denmark with a market share of 16%.
First and foremost, we create value for our shareholders through our core business and not via risky financial investments.
The objective of Topdanmark’s dividend policy is to distribute excess capital to its shareholders.
Topdanmark has a disciplined approach to capital, thus capital that is not necessary to maintain operations will be distributed to the shareholders and accumulation of unnecessary excess capital will be avoided.
Topdanmark’s Board of Directors has adopted a dividend policy according to which dividend distribution will take place via annual distribution of dividends. Distribution of dividend will take place immediately after the approval at the annual general meeting.
The dividend will correspond to a payout ratio of minimum 70%.
Trend in dividend per share.
Given Topdanmark’s solid own funds, the Board of Directors will recommend to the AGM that distribution of a total dividend of DKK 2,790m takes place, representing DKK 31 per share, a pay-out ratio of 136 and a dividend yield of 8.5. The recommendation has been updated 16 March based on Topdanmark Forsikring A/S’ acquisition of Oona Health A/S.
The total dividend is made up of an ordinary dividend of DKK 990m from this year’s profit from continuing operations of DKK 960m, representing DKK 11.0 per share and a pay-out ratio of 103.1, as well as an extra dividend based on the sale of Topdanmark Liv Holding A/S of DKK 1,800m, representing DKK 20 per share.
Subject to the approval from the AGM, the distribution of dividend will take place immediately after the AGM on 26 April 2023.