Given that the companies were preparing their financial reports in a traditional method, the companies seem to have a hard time preparing them in the new format. Due to which the insurance companies have not been able to announce a dividend of the last FY.
Although few non-life insurance companies have already announced their dividends, life insurance companies may take a longer time to announced their dividend. Life insurance companies are required to get their financial reports prepared under NFRS format from IB after actuarial valuation.
What’s more, few insurance companies are still preparing the financial reports of the previous FY 2074/75 while few companies have been able to conduct AGMs of previous FY after lengthy homework with IB regarding NFRS formatted financial report.
Delay in preparation of financial report has obviously delayed conduction of AGM of such companies. Out of the 19 life insurance companies operating in Nepal, only 7 are listed in NEPSE, among them, only 5 companies have conducted their AGM of FY 2074/75.
In the previous FY, Life Insurance Corporation (LIC) Nepal distributed the highest dividend of 70 percent including 34.46 percent stock and 35.53 percent cash dividend to its shareholders in the previous FY 2074/75.
Similarly, Nepal Life, National Life and Surya Life have already distributed the announced dividend while Gurans Life has announced a dividend of 13.10 percent but is yet to conduct AGM of previous FY.
Asian Life and Prime Life are such companies that are yet to announce a dividend of the previous FY 2074/75.
Given below is the dividend history of life insurance companies of the last five years. Based on the dividend history and average dividend distributed by the companies, investors can predict about the future dividend of the companies.
