Zurich Insurance plc- Share Capital Reduction
Zurich Insurance plc (the “Company”) proposes to increase its distributable reserves, which will provide greater flexibility for the Company to make dividend payments to its shareholders in the future.
This increase will be achieved by the cancellation of the Company’s entire share premium account using the capital reduction process set out in the Irish Companies Act 2014, which is an Irish High Court process and requires shareholder approval.
The proposed capital reduction was unanimously approved by the Company’s shareholders on 31 August 2018.
The Company began an application to the High Court of Ireland on 3 September 2018 seeking confirmation of the capital reduction. The application is to be heard before the High Court (Commercial) on 13 November 2018 at 11.00 a.m. at the Four Courts, Dublin 7, Ireland.
The Company believes that confirmation of the capital reduction will not prejudice any customer or creditor of the Company. The net assets of the Company will not be reduced as a result of the capital reduction and the process will not involve a dividend payment or any other return of capital to shareholders. The number of shares in the Company in issue and their nominal value will also remain the same.
The Company has engaged KPMG to produce an independent report on the impact of the proposed capital reduction on the Company’s creditors and policyholders. KPMG concluded that the security for creditors and policyholders will not be adversely affected by the capital reduction as the financial strength of the Company will remain unchanged following the capital reduction. A copy of KPMG’s report is available [click here].
A Frequently Asked Questions document has been prepared by the Company on the capital reduction process and is available [click here].
If you have any queries about the proposed capital reduction, please contact the Company by email at ZIP.firstname.lastname@example.org.