Insurance Authority Allows MetLife To Repatriate Cash Dividends

Kathmandu. Nepal Insurance Authority paved way for the branch office of MetLife to repatriate its dividend from Nepal. The meeting of the Board of Directors(BODs) of the Authority allowed the repatriation of 20 percent dividends from the profits earned in 2078-79 by MetLife’s Nepal branch office.

Any company established in Nepal, as per the Foreign Investment and Technology Transfer Act, of 1992, can repatriate dividends earned from the investment made in Nepal.

Similarly, the Authority has given an exceptional decision in favor of MetLife amid its stand to restrict cash dividends distribution by insurers. All the homegrown insurers are instructed not to forward the agenda of cash dividends distribution except for the purpose of capital gain tax adjustment against the stock dividends.

The Authority has given the nod to MetLife on the condition that Met Life’s headquarters must be responsible for future liabilities to policyholders in Nepal. Earlier, the dividends repatriation was not allowed to MetLife by the Authority itself unless the reserve funds crossed Rs. 2 billion which was equal to the minimum paid-up capital for the life insurers.

The homegrown life insurers must maintain at least Rs.5 billion paid-up capital within Chaitra end of 2079. Only 45 days left to meet the deadline.

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