Why is IME Life Insurance Delaying Dividend Announcement?

Apr 09, 2024 12:21 PM Merolagani

Most of the life insurance companies that issued initial public offerings (IPO) in premiums have already announced dividends to be distributed among the shareholders. However, IME Life Insurance has not announced dividend of the last FY.

Out of 12 life insurance companies, SuryaJyoti, Citizen, Reliable Nepal, Asian and Sun Nepal Life Insurance have already proposed dividends to their shareholders. While Nepal Life, Life Insurance Corporation (Nepal), Himalayan Life and Sanima Reliable Life announced of skipping dividend distribution, National Life, Prabhu Mahalaxmi Life and IME Life are yet to announce dividend.

Among the companies that issued IPO in premium, IME Life Insurance is the only company that has not announced dividend to the shareholders.

in this regard, Kabi Phuyal, CEO of IME Life informed that the financial reports of the company are in the last stage of approval from Nepal Insurance Authority.

Currently, the company has a paid-up capital of Rs 4 billion which means it still needs Rs 1 billion to meet the minimum requirement of paid-up capital. Given that the company is still short of the minimum capital requirement, it will prefer bonus share distribution, say the company’s officials.

Moreover, the company is planning to issue right share to meet needed capital after bonus share distribution.

 

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