LIC Nepal AGM Approves 21.05% Cash Dividend
18th January 2026, Kathmandu
Life Insurance Corporation (LIC) Nepal Limited has successfully concluded its 24th Annual General Meeting (AGM), endorsing a 21.05 percent cash dividend for its shareholders. The meeting was held on Wednesday, January 14, 2026 (Poush 30, 2082), at the Nepal Administrative Staff College in Jawalakhel, Lalitpur. This assembly marked a key corporate milestone for one of Nepal’s leading life insurance companies, reflecting its resilience and financial stability in the 2081/82 fiscal year.
LIC Nepal AGM
During the AGM, shareholders unanimously approved the proposal to distribute a cash dividend equivalent to 21.05 percent of the company’s current paid-up capital. Based on the company’s paid-up capital of Rs 5.50 billion, this distribution translates to approximately Rs 1.15 billion in total dividend payouts. This decision underscores LIC Nepal’s commitment to delivering consistent value to its investors, despite a broader slowdown in the insurance sector’s net profit growth over the past year.
Financial Statements and Performance Review
The AGM endorsed the comprehensive annual report presented by Chairman Ratnakar Patnaik on behalf of the Board of Directors. The report provided an overview of the company’s operational milestones, highlighting that LIC Nepal remains the third-largest player in the market with a net premium collection of over Rs 19.82 billion for the fiscal year ending mid-July 2025 (Ashadh end 2082).
Shareholders approved the balance sheet, profit and loss account, and cash flow statement for the fiscal year 2081/82. These documents revealed that while the company faced a decline in net profit compared to previous years, its life insurance fund remains robust at over Rs 133 billion. The formal passing of these financial statements reflects shareholder confidence in the company’s transparency and its ability to manage high volumes of long-term investments.
Auditor Appointment and Regulatory Compliance
In accordance with the recommendation of the Audit Committee and regulatory requirements, the AGM approved the appointment of an external auditor for the fiscal year 2082/83. The meeting confirmed that the incumbent auditor, KJ Associates, is eligible for reappointment and fixed the auditor’s remuneration for the upcoming cycle.
This continuity in financial oversight ensures that the company remains compliant with the Nepal Insurance Authority (NIA) directives and the Companies Act, 2063. Maintaining high standards of auditing is particularly crucial for LIC Nepal as it navigates new solvency ratio requirements and evolving accounting standards within the Nepali insurance landscape.
Governance and Board Restructuring
The 24th AGM served as a platform to formalize several key board appointments. Shareholders approved the appointment of directors representing the promoter group, which includes the Life Insurance Corporation of India and the Vishal Group. Additionally, the appointment of independent directors was ratified to ensure balanced governance and expert oversight of the company’s strategic goals.
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A proposal to increase the meeting allowances for the Chairman and members of the Board of Directors was also passed. This adjustment recognizes the increasing complexity of regulatory obligations and the time commitment required from board members to oversee a company of this scale.
Social Responsibility and Community Engagement
In line with Section 105(1)(c) of the Companies Act, 2063, the AGM approved the corporate social responsibility (CSR) expenditures incurred during the 2081/82 fiscal year. LIC Nepal has remained an active corporate citizen, directing funds toward education, healthcare, and community support initiatives across various provinces in Nepal.
The approval of these expenses highlights the company’s philosophy of “Yogakshemam Vahamyaham” (Your welfare is our responsibility), aligning its business success with the broader development of the Nepali society.
Market Position and Future Outlook
As of early 2026, LIC Nepal manages more than 690,000 active policies, making it one of the most trusted brands in the country. With a solvency ratio significantly above the regulatory minimum, the company is well-positioned to expand its product portfolio, particularly in the micro-insurance and digital policy segments.
The successful conclusion of the 24th AGM and the distribution of a 21.05 percent dividend set a positive tone for the 2082/83 fiscal year. Management has expressed a clear focus on digital transformation to improve customer service and reduce operational expense ratios.
Conclusion
The conclusion of LIC Nepal’s 24th Annual General Meeting represents a significant achievement for the company and its 55 million shares outstanding. With the approval of a 21.05 percent cash dividend, audited financial statements, and a reinforced board, the AGM reaffirmed shareholder trust in the company’s leadership and long-term outlook. As the company moves forward, these decisions are expected to support sustained growth, maintain high bonus rates for policyholders, and ensure continued stability in Nepal’s competitive life insurance industry.
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