Lebanese insurers to stop distributing dividends

The Ministry of Economy and Trade issued on February 20^th, 2020, a circular prohibiting Lebanese insurers from distributing dividends to shareholders for the fiscal year 2019.

The distribution of dividends accumulated in previous years is also prohibited. In addition, insurance companies are no longer allowed to make payments to shareholders or companies of the same group without the approval of the Insurance Control Commission (ICC).

Such a restriction is valid regardless of the nature and type of payment, whether justified or not. The purpose of these measures is to preserve the solvency of insurers subject to serious liquidity problems.

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