The Loss-Absorbing Capacity of Distant Dividends That Can Still Be ‘Foreseen’
Foreseeable dividends remain a grey area in Solvency II and South Africa’s Solvency Assessment and Management (SAM). While the concept seems straightforward—capital that is likely to be distributed as dividends should not count towards regulatory solvency—its practical application is anything but clear. Regulatory Ambiguity: When Is a Dividend Foreseeable? The official guidance under Solvency II…