Kathmandu: The actuarial valuation report of Jyoti Life Insurance(JLI) and Mahalakshmi Life Insurance(MLI) Company for the FY 2076/77 has been approved by the Actuaries of the Insurance Board(IB).
Once approved by the actuary, it must be approved by the Board of Directors of the IB.
Once the actuarial valuation is approved, the companies will first announce the bonus rate of the insurance policy for the insured. Actuarial valuation is the most important task for insurance companies. Without the approval of actuarial valuation report, the financial statement of the life insurance companies cannot be prepared.
After the preparation of the financial statement, again it should be submitted to the IB for approval. If the committee finds any shortcomings, it will send it to the company for further amendment. If no shortcomings are found in the report, the IB will approve it within 10 days. Only then can the companies call for AGM.
Jyoti Life has already issued primary shares last year. Now, JLI can proceed to distribute dividends from last FY’s reserve fund. Since the right to pay dividends or not is with the board of directors of the company, it cannot be said that it can pay dividends right now.
With the approval of actuarial valuation of FY 2076/77(2019-20), now Mahalakshmi Life Insurance(MLI) can proceed for IPO issue after the approval of it’s financial audit report. As soon as the audit report is passed, the company will send it to the rating agency for issuer rating. The company has proposed to issue IPOs worth Rs. 600 million.