IDEAS home Printed from https://ideas.repec.org/p/fau/wpaper/wp2022_17.html
   My bibliography  Save this paper

Do EU-Wide Stress Tests Affect Insurers´ Dividend Policies?

Author

Listed:
  • Petr Jakubik

    (European Insurance and Occupational Pensions Authority (EI-OPA), Germany & Charles University in Prague, Faculty of Social Sciences, Institute of Economic Studies, Czech Republic)

  • Saida Teleu

    (Central Bank of Malta, Malta & Charles University in Prague, Faculty of Social Sciences, Institute of Economic Studies, Czech Republic)

Abstract

The article employs panel data to investigate whether stress test results and other characteristics associated with European insurers vulnerabilities affect dividend distributions and share buybacks. We focus on the EU wide insurance stress test conducted in 2018 and 2021 as in this way we can also capture a behaviour of insurers during the COVID-19 crisis. Our empirical results suggest that two stress tests considered had no significant impact on changes in dividend distributions. However, more resilient insurers measured by assets-over-liabilities ratio seem to have higher dividend payout ratios including share buybacks. On the contrary, higher generated profit tend to be reflected in lower payout ratio.

Suggested Citation

  • Petr Jakubik & Saida Teleu, 2022. "Do EU-Wide Stress Tests Affect Insurers´ Dividend Policies?," Working Papers IES 2022/17, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Aug 2022.
    • Handle: RePEc:fau:wpaper:wp2022_17
    as

    Download full text from publisher

    File URL: https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6656
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    dividend distributions; dividends and share buybacks; European insurers; EU-wide insurance stress test; COVID-19;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:wpaper:wp2022_17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.