Kathmandu: The dividend declared by the company in Nepal Reinsurance(Nepal Re) has been approved by the Insurance Board. Insurance Board is the regulatory authority for insurance industry in Nepal. Nepal Re had offered a bonus share of 16.50 per cent and a cash dividend of 2.50 per cent of the paid-up capital. The Board has also approved the audit report for the fiscal year 2076/77. With the approval of the audit report, the way is open for holding a general meeting. The company will announce the date and agenda of the general meeting in a few days.
It took time for the audit report to be approved after the Board found some objections in the company’s financial statements. The company also had to reduce its cash dividend by one percent. Despite the reduction in cash dividends, the bonus shares have been kept unchanged.
The company is also discussing plans to raise capital at the general meeting. But so far no concrete decision has been taken in this regard. As the government has a large share in Nepal Re, the government is not considering raising capital.
The Insurance Board has been suggesting the Government of Nepal to sell the shares of Nepal Reinsurance to pay the claims of Covid19 Insurance. If the GoN sells shares of Nepal Re as suggested by the Board, the company is likely to increase its capital.