Kathmandu. Four general insurance companies have yet to distribute dividends to their shareholders from the profit earned during Fiscal Year 2076/77. It’s already been 11 months since the completion of the last fiscal year. Among 18 general insurance (non-life) listed on NEPSE, four insurers including Sanima General Insurance, General Insurance Company, United Insurance Company, and Rashtriya Bima Company have not declared dividend so far. The remaining 13 insurance companies have already declared dividends. Most of the non-life insurance companies that have declared dividends have already held annual general meetings (AGM) while some companies have set the date for the AGM.
In the case of non-life insurance companies, there is a provision that the company should declare dividends within the first six months of the new fiscal year and inform the same to Beema Samiti, the regulator for approval. But some companies have not even declared dividends.
The companies that declared the highest dividend:
Of the 13 non-life insurance companies that have declared dividends for the fiscal year 2076/77, Shikhar Insurance Company has declared the highest dividend. The company has declared a dividend of 29.23 percent, including 27.22 percent bonus shares and 1.46 percent cash. The dividend (bonus share) has been credited to the beneficiary account of the shareholders.
Companies remaining to close the book by offering dividends:
Three companies have declared the dividends of FY 2076/77 but yet to close their book. Everest Insurance Company, NECO Insurance Company, and NLG Insurance Company have not set a date for book closing.
Sagarmatha Insurance has announced to pay an 11.57 percent dividend. The company has announced to distribute 11 percent bonus shares and 0.57 percent cash dividend for tax purposes.
Similarly, NECO Insurance has declared a dividend of 16.32 percent which includes a 15.5 percent bonus share.
NLG Insurance has proposed to distribute 10 percent bonus shares of the paid-up capital from the profits of the FY 2076/77 and 0.5263 percent cash dividend for tax purposes on the bonus shares.
(The book-closure date of these companies has not been fixed yet. Therefore, the shareholders remaining till the trading day before the book-closure will be eligible to receive dividends.)
Companies that have closed the book after dividend declaration:
Out of the 13 companies that have declared dividends, 10 companies have already closed the book for the AGM FY 2076/77 and the proposed dividend. Shikhar Insurance, Premier Insurance, Nepal Insurance, IME General Insurance, Prudential Insurance, Prabhu Insurance, Everest Insurance, Himalayan General Insurance, Siddhartha Insurance, and Lumbini General Company.
Companies holding general meetings:
Ajod Insurance Company has already held a general meeting. But Ajod Insurance Company has left its shareholders empty-handed this year. The company has not paid dividends this year. Similarly, the AGM of Shikhar Insurance, Premier Insurance, Nepal Insurance, IME General Insurance, Prabhu Insurance, and Everest Insurance have been held and the proposed dividend has been approved by the AGM.
The AGM of three companies is yet to be held. AGM of Himalayan General Insurance, Lumbini General Insurance and Siddhartha Insurance is scheduled to be held on 28th June 2021.
