14th May 2025, Kathmandu
National Life Insurance Company has announced a total 15% dividend for its shareholders. The board of directors made this decision in a meeting held on Wednesday morning.
National Life Insurance Dividends
The dividend package includes both bonus shares and cash payouts, offering returns based on the company’s profits from the last fiscal year.
Dividend Breakdown
National Life will offer:
10% cash dividend
5% bonus shares
The company also allocated 0.789% of the cash dividend for tax purposes, as required by regulations.
Currently, National Life Insurance has a paid-up capital of Rs. 5.21 billion. Based on this capital, the total dividend amount is significant. The announcement shows that the company is maintaining its policy of rewarding shareholders regularly.
Next Steps: Approval and AGM
This dividend proposal still requires approval from the Insurance Board of Nepal. After that, it will be presented to the company’s Annual General Meeting (AGM).
Once shareholders approve it during the AGM, the company will begin distributing bonus shares and cash dividends.
National Life said it will follow legal and procedural steps before executing the dividend plan.
Company’s Market Position
As of now, National Life Insurance shares are trading at around Rs. 620 per share in the secondary market. The company has maintained a good reputation in the market, especially among long-term investors.
This announcement may help boost investor confidence. It also signals the company’s stable financial performance and its intention to reward shareholders.
Dividend Trend
Last year, National Life had declared a 14% dividend, including both cash and bonus shares. This year’s 15% shows a slight increase. It suggests the company has improved its earnings and wants to share that success with investors.
The consistent dividend record shows the company’s strength and ability to generate profits year after year.
Why It Matters
Dividends are a major attraction for investors in Nepal’s insurance sector. Companies that provide regular returns are more likely to retain shareholder trust. In the case of National Life, the combination of bonus shares and cash makes the dividend more appealing.
Bonus shares increase the number of shares an investor holds. On the other hand, cash dividends provide immediate liquidity. The mix of both types gives shareholders flexibility.
Shareholder Benefits
Investors who hold National Life shares as of the book closure date will be eligible for the dividend. The company will soon announce the book closure date after getting regulatory approval.
Once finalized, shareholders can expect:
Bonus shares added to their accounts
Cash dividend is directly deposited into their bank accounts or sent via cheque
This process usually takes a few weeks after the AGM.
Impact on Future Plans
By declaring a balanced dividend, National Life also shows that it wants to retain enough earnings for future investment. The insurance sector is growing. Companies like National Life need capital to expand services, improve technology, and reach new customers.
By keeping 85% of its earnings within the company, it creates room for future growth without relying on additional borrowing or capital injection.
Conclusion
National Life Insurance’s 15% dividend for fiscal year 2080/81 (2023/24) reflects its strong financial health. The mix of cash and bonus shares offers both short-term and long-term value to investors.
Although the dividend plan still needs approval, the announcement has already created positive sentiment in the market. Investors now wait for the Insurance Board’s green signal and the upcoming AGM.
The company has once again proven its reliability by delivering consistent shareholder returns. This move strengthens its reputation as a leading insurer in Nepal.
For more: National Life Insurance Dividends