11 Insurance Companies Declare Dividends from Last Financial Year’s Profits
Kathmandu – Eleven insurance companies listed on the Nepal Stock Exchange (NEPSE) have declared dividends from the profits of the last financial year 2080/81. Among them, five are life insurance companies and six are non-life insurance companies. This period, from Magh to Chaitra month, is often regarded as the dividend season for insurance companies. Out of the 24 insurance companies listed on NEPSE, nearly half have announced dividends for their shareholders.
According to the directives of the Nepal Insurance Authority, companies that have already reached the required paid-up capital have focused more on cash dividends, while those yet to meet the capital requirement have announced bonus shares to help reach the prescribed capital. Most insurers offering dividends have prioritized cash dividends to provide direct returns to their investors.
Among the life insurance companies, SuryaJyoti Life, Nepal Life, IME Life, Citizen Life, and Sanima Reliance Life have declared dividends. SuryaJyoti Life, IME Life, and Nepal Life have already achieved the required paid-up capital of NPR 5 billion. After the distribution of bonus shares, Citizen Life and Sanima Reliance Life are also expected to meet the capital requirement. Sanima Reliance Life has declared a total dividend of 9.2489 percent, while Citizen Life announced 28.4043 percent. IME Life and Nepal Life declared dividends of 21.0526 percent and 21.05 percent, respectively, while SuryaJyoti Life offered a 20 percent dividend.
In the non-life insurance sector, Siddhartha Premier, Shikhar Insurance, Himalayan Everest Insurance, IGI Prudential, Nepal Insurance, and Sanima GIC have announced dividends. Except for Sanima GIC and Nepal Insurance, all other non-life insurers have already reached the required capital of NPR 2.5 billion. Sanima GIC Insurance has declared a total dividend of 7.8947 percent, while IGI Prudential Insurance announced 9.7368 percent. Siddhartha Premier Insurance has declared the highest dividend at 30 percent, followed by Shikhar Insurance with 10.5263 percent, Himalayan Everest Insurance with 8.75 percent, and Nepal Insurance with 15.79 percent.
The Nepal Insurance Authority has set a capital requirement of NPR 5 billion for life insurance companies and NPR 2.5 billion for non-life insurance companies. To meet these requirements, many insurance companies have opted for bonus shares. Most of the insurance companies have already completed their annual general meetings and distributed the declared dividends to their shareholders’ accounts.