Kathmandu: Failure to completion of actuarial valuation process on time has again resulted delay in the annual general meeting of the life insurance companies. According to the Insurance Board, out of the 19 life insurance companies, only Asian Life Insurance (ALICL) has been able to conduct the AGM for previous fiscal year 2077-78.
The 14th AGM of Asian Life Insurance held on 13th Ashoj, 2079 at Simara Bara has approved the 15.26 percent dividend including 14.5 percent stock dividend distribution.
National Life Insurance (NLICL) has offered 15.789 percent dividend including 15 percent stock dividend. National Life has plan to meet the minimum regulatory paid up capital by the distribution of stock dividend and issuing right shares to the shareholders.
On the other hand, Nepal Life Insurance (NLIC) has skipped stock dividend this time. It has offered a cash dividend of 15.789 percent from the profits of FY 2077-78. National Life and Nepal Life Insurance have not announced book close date for dividend purpose yet.
Nepal Life Insurance(NLIC) has no worries to meet the minimum paid-up capital since it already has a paid-up capital of Rs. 8 billion plus.
According to the regulatory provision, the life insurers are supposed to maintain at least Rs.5 billion paid-up capital by the end of Chaitra 2079. Only 6 months left to meet the deadline. It has been expected that almost all the insurance companies will conduct their AGM by the end of Paush for the previous fiscal year.