Dividend History of NLIC (Nepal Life Insurance Company)

Dividend History of NLIC

Nepal Life Insurance Company (NLIC)  is one of the top life insurance companies in Nepal. It was established on Baisakh 21st, 2058 under the Company Act 2053 and Insurance Act 2049 with an aim to endeavor through the noble institution of Life Insurance in making every family economically safe.

The company has an authorized capital of Rs.1,000 Crore and a Paid-up Capital of Rs.719.99 Crore. The company has issued 13,97,994 conventional policies having a total premium income of Rs.13,865.22 Crore and 15,31,813 Foreign Expatriate policies having a premium income of Rs.414.86 Crore.

NLIC was awarded Best Insurance Company of the Year in 2018 and Higher Tax Payer award among the Insurance Company in 2019.

Dividend History of NLIC

The company covers about 40 % of the life insurance business in Nepal and thus, is one of the most profitable life insurance companies in Nepal. As a result, the company pays impressive returns to its investors as cash bonuses as well as bonus shares.

The following table shows the dividend history of Nepal Life Insurance Company.

Fiscal Year Cash Dividend Bonus Share Total Dividend
2066/67 0 0 0
2067/68 7.37 0 7.37
2068/69 56.31 70 126.31
2069/70 28.5 70 98.5
2070/71 8 60 68
2071/72 1.32 25 26.32
2072/73 1.32 25 26.32
2073/74 28.53 42 70.53
2074/75 23.5 25 48.5
2075/76 20 31 51

From the table, we can analyze that Nepal Life Insurance Company has been giving out impressive dividends every year. The lowest dividend paid till the date is 7.37% in the year 2067/68. The highest dividend paid is a whopping 126.31% paid in 2068/69.

The bank has been giving bonus shares almost every year except for 2067/68. As a result, the highest bonus share is 70%, whereas the lowest is 25 in 2071/72 and 2072/73. As for cash bonuses, the highest cash bonus is 56.31% in 2068/69, whereas the lowest is 1.32 in 2071/72 and 2072/73.

Dividend of NLIC in 2075/76

NLIC convened its 20th AGM on Magh 28, 2077, and approved the proposal to provide a 31 % bonus and a cash dividend of 20 % for the fiscal year 2075/76. Thus, 31 % bonus i.e 1,70,38,098.51 bonus shares of Nepal Life Insurance Company Limited (NLIC) were listed in NEPSE.

After the capitalization of the proposed bonus shares, the paid-up value of the company scaled up to Rs 7.19 Arba, the highest among the insurance companies in Nepal.

The company reported growth in net profit by 8.36% in Q3. The company reported a net profit of Rs. 50.66 crores compared to Rs. 46.75 crores of the corresponding quarter of the previous year.

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