A profitable overall earnings trend offset by relatively modest dividend requirements
have supported surplus growth and a sustained solid level of risk-adjusted capitalization.
Favorably, the majority of the debt is housed at the lead operating company thereby the entire asset position is available to service the debt and is not constrained by statutory dividend requirements
In addition, operating earnings are dampened by dividend requirements
that have averaged 7.2 points on the combined ratio over the last five years.
Additionally, the lack of outright control and shareholders limited dividend requirements
have alleviated the pressure on ASNIC.
The firm said that it earnings before deducting provisions for loan and real estate losses, real estate expenses, income taxes and preferred dividend requirements
have increased to USD6.9m, from USD6.3m during the corresponding period in the previous fiscal.
The revision stems from the company's sustained annual capital growth thanks to its consistently profitable operating results and the absence of dividend requirements
by the parent, Southwest Business Corp (SWBC), the service specified.
Alternatively, if dividends are increasing constantly, the total dividends declared in the current year should be employed as a more up-to-date measure of prospective cash dividend requirements
There is no time constraint for the reinvestment as dividend inflow excluding Abertis is sufficient to fulfil La Caixa Foundation's dividend requirements
over the period.
Watania's capital position is insulated from potentially onerous dividend requirements
by the UAE regulatory environment, which limits dividend distribution until policyholder deficit has been recouped from future earnings.