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 Denmark’s second largest insurance company with a market share of 17% for non-life insurance. For life insurance, we come fifth among the commercial companies with a market share of 9%.
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 distribution 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 distribution policy according to which dividend distribution will take place via annual distribution of dividends. Distribution of dividends will take place immediately after the AGM.
The dividends will correspond to a payout ratio of at least 70%.
Dividend distribution for 2019
As a consequence of the volatile situation and the lower assumed result for 2020, the Board of Directors will propose to the Annual General Meeting on 2 April 2020 a dividend payout of DKK 8.5 per share. When the situation is back to normal, the Board of Directors has the option of distributing the remaining DKK 8.5 of the announced dividend of DKK 17 per share as extraordinary dividend. If so, this would be later in 2020 or at the ordinary general meeting in 2021.