When newbie like Ajod Insurance and Sanima General Insurance have already conducted AGM of the last FY, insurance companies that are being operated since the long time have failed to even prepare their financial reports as required by the regulatory body.
Previously, Insurance Board directed all the insurance companies to prepare their financial reports as per NFRS format, however, only few has been able to able to do so.
Due to the failure, the companies have not been able to declare their dividends and call out AGM of the last FY.
Among the old insurance companies, only Prabhu Insurance has called out its AGM after preparing and approving its financial report as per NFRS format.
By the mid-January, only five general insurance companies including Nepal Insurance, Himalayan General, IME General and Prabhu Insurance have declared their dividends of the last FY.
Nepal Insurance has proposed of distributing 5 percent stock dividend worth Rs 54.7 million and 2.89 percent cash dividend worth Rs 31.7 million of its current paid-up capital of Rs 1.09 billion.
Himalayan General has proposed of distributing 5 percent stock dividend and 5.5 percent cash dividend. Similarly, IME General Insurance proposed 6 percent stock and cash dividend worth Rs 3.2 million. Likewise, Prabhu Insurance has proposed of distributing 5 percent stock and 11.32 percent cash dividend to its shareholders.
Moreover, Neco Insurance proposed of distributing 8.42 percent cash dividend.
These companies proposed dividend after preparing financial reports as per NFRS format. Except Prabhu Insurance, no other companies have called out their AGM. Prabhu Insurance called out AGM on February 7.
Although few non-life insurance companies announced their dividends, life insurance companies may take a longer time to announce their dividend as they have not been able prepare their financial reports under NFRS format.
As per IB, none of the life insurance companies have prepared their financial reports under NFRS format till January 16. A source told Merolagani that it will further take at least one month for the companies to announce their dividend.
