Non-life insurance companies have started offering dividends from the profits of the last financial year 2078/79. Nirjeevan insurance companies have started offering dividends in full after the financial statements of the last financial year have been approved by the Nepal Insurance Authority.
Out of the 16 non-life insurance companies listed on the Nepal Stock Exchange (NEPSE) (after consolidated transactions), 9 have offered dividends so far.
The Insurance Authority had arranged that cash dividends could be distributed only for tax purposes, emphasizing on increasing the capital. Accordingly, non-life insurance companies have started offering dividends by emphasizing on bonus shares.
Among those listed in NEPSE, Sagarmatha Insurance, Shikhar Insurance, Neco Insurance, IME General Insurance, NLG Insurance, Premium Insurance, Siddharth Insurance, United Insurance and Nepal Insurance have offered dividends.
Among them, Shikhar Insurance is the one that offers the highest dividend. Shikhar has proposed 16 percent bonus shares from last financial year's profit and 16.8421 percent dividend for tax purpose with 0.8421 percent cash.
Neco Insurance has been the highest dividend payer since the peak. Neko has proposed 15 percent bonus shares from last financial year's profit and 15.79 percent dividend in cash for tax purposes.
Similarly, Primer Insurance got 14.25 percent bonus shares and 0.75 percent bonus and 15 percent, Sagarmatha Insurance got 12.5 percent bonus shares and 0.6579 percent cash and 13.15 percent, NLG Insurance got 10 percent bonus shares and 0.5263 percent. 10.5263 percent in cash, Siddharth Insurance has offered 9 percent bonus shares and 0.4737 percent cash dividend of 9.4737 percent, Nepal Insurance has offered 8 percent bonus shares and 0.4211 percent in cash and 8.4211 percent dividend.
United Insurance is the one that offers the lowest dividend. United has proposed a 5% bonus from last financial year's profit and a 5.2632% dividend for tax purposes with 0.2632% in cash.
| SN | Company | Bonus | cash | Total | AGM Date | Book Closure Date |
|---|---|---|---|---|---|---|
| 1 | Shikhar Insurance | 16.00% | 0.84% | 16.84% | ||
| 2 | Neco Insurance | 15.00% | 0.79% | 15.79% | ||
| 3 | Premier Insurance | 14.25% | 0.75% | 15.00% | 1/13/2023 | 1/6/2023 |
| 4 | Sagarmatha Insurance | 12.50% | 0.60% | 13.10% | ||
| 5 | NLG Insurance | 10.00% | 0.53% | 10.53% | ||
| 6 | Siddhartha Insurance | 9.00% | 0.47% | 9.47% | 1/13/2023 | 1/2/2023 |
| 7 | Nepal Insurance | 8.00% | 0.42% | 8.42% | 1/6/2023 | 12/23/2023 |
| 8 | IME General Insurance | 6.50% | 0.34% | 6.84% | ||
| 9 | United Insurance | 5.00% | 0.26% | 5.26% | 1/11/2023 | 1/1/2023 |
| 10 | Dividend Average | 10.69% | 0.56% | 11.25% |
Only 4 companies have called a general meeting out of the ones that have proposed dividends. Nepal Insurance, United Insurance, Siddharth Insurance and Premier Insurance are among those who called the general meeting.
These four companies have also set the book close date for general meeting and dividend purposes.
Nepal Insurance has decided to close the book on January 8th, United Insurance on January 17th, Siddharth Insurance on January 18th and Premier Insurance on January 22nd. According to that, only the shareholders who remained till the previous business day of the book close date will get the dividend distributed by the companies.
Despite offering dividends, none of the rest of the non-life insurance companies have convened a general meeting. Except for Nepal Insurance, which has offered dividends, all companies still have the opportunity to receive dividends.
Ajod does not distribute dividendsAjod Insurance has decided not to distribute dividends from the profits of the last financial year. The company called the fifth annual general meeting on 30th of January without dividend.
The company has prepared to pass only the general proposals to be discussed and passed on the financial statements.
Dividends of 6 companies are yet to comeOf the 16 non-life insurance companies (after consolidated transactions) listed in NEPSE, 9 of them have offered dividends from the profits of the last financial year. One such company called the general meeting of the last financial year without dividend.
Accordingly, six more companies are yet to offer dividends. National Insurance Company, Lumbini General Insurance, Himalayan Everest Insurance, Prudential Insurance, Sanima SGI Insurance, Prabhu Insurance are yet to offer dividend from last financial year's profit.