dividend, cr or nada, page-30

Manxman, you say that NPAT is down and dividends will be reduced. I don't quite understand this in reference to the report.

The company states that NPAT to the 31st OF DECEMBER (or half the financial year) is expected to exceed $1 billion AND this is an INCREASE of 30% on the previous year. I can't see how a 30% increase in NPAT equates to a dividend reduction. Are you should you shouldn't be basing your dividend ratio payout on a full year NPAT of $2 billion or a similar figure? In that case the March dividend should be more around the 70c mark.

Last year was far worse in regards to natural catastrophes, and the premiums have increased significantly, so I just can't see how the situation would be getting worse. Then again perhaps I have no idea and in that case should not be in the stock. Bottom line is NPAT increasing 30% has to be a good thing.