NLG Insurance Dividend Approval Update
15th January 2026, Kathmandu
The NLG Insurance dividend approval has been formally confirmed following the successful conclusion of the company’s 20th Annual General Meeting (AGM). The meeting was held in Kathmandu at the Silver Oak Banquet and Events Center in Gairidhara on Wednesday, January 14, 2026 (Poush 30, 2082), marking a significant milestone for the company and its shareholders. During the AGM, shareholders approved the dividend proposal for the fiscal year 2081/82, reflecting the company’s stable financial position and commitment to shareholder returns.
NLG Insurance Dividend Approval
According to the approved resolution, NLG Insurance Company Limited will distribute a total dividend of 7.3684 percent based on its existing paid-up capital of NPR 2.56 billion. The dividend package includes both bonus shares and a cash dividend, ensuring a balanced return structure that provides both capital appreciation and immediate liquidity for investors.
Breakdown of the 7.3684 Percent Dividend
Out of the total dividend, 4 percent has been approved in the form of bonus shares, amounting to approximately NPR 102.61 million. In addition, shareholders will receive a 3 percent cash dividend equivalent to NPR 76.95 million. For tax adjustment purposes, the company has allocated an additional 0.3684 percent, amounting to NPR 9.45 million, specifically to cover the tax liability of the bonus and cash components as required under prevailing tax regulations.
Following the distribution of these bonus shares, the paid-up capital of NLG Insurance is set to increase from NPR 2.56 billion to approximately NPR 2.66 billion. To reflect this capital enhancement, the AGM approved a special proposal to amend the company’s Memorandum of Association and Articles of Association. This amendment ensures regulatory compliance with the Nepal Insurance Authority (NIA) and aligns the company’s legal structure with its updated capital base.
Governance and Regulatory Compliance
The meeting further authorized the Board of Directors to implement any additional amendments if required by regulatory bodies. Should any feedback, directives, or recommendations be received from the NIA or the Securities Board of Nepal (SEBON), the board has been granted full authority to incorporate such changes without the need for further shareholder approval. This provision supports efficient governance and ensures that the company remains responsive to the evolving regulatory landscape in Nepal’s insurance sector.
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In addition to dividend-related resolutions, the AGM approved the company’s annual report and the auditor’s report for the fiscal year 2081/82. These approvals confirm shareholder confidence in the company’s financial transparency, reporting standards, and overall corporate governance practices. The shareholders also endorsed the appointment of an external auditor for the ongoing fiscal year 2082/83 and finalized the auditor’s remuneration, adhering to statutory audit requirements.
Strategic Market Position and Investor Impact
The NLG Insurance dividend approval highlights the company’s consistent performance in Nepal’s competitive non-life insurance sector. By maintaining a combination of bonus shares and cash dividends, the company demonstrates a balanced approach to capital growth. Bonus shares contribute to long-term value creation by strengthening the capital base and improving the company’s underwriting capacity, while the cash dividend provides tangible benefits to investors seeking regular income.
From an investor perspective, the 20th AGM serves as a positive indicator of corporate health. The company’s ability to distribute dividends while simultaneously increasing its paid-up capital suggests effective operational management. It is important to note that the book closure for this dividend was on Poush 22, 2082 (January 6, 2026), meaning only those shareholders who held shares until that date are eligible for the payout.
Conclusion
In conclusion, the NLG Insurance dividend approval at the 20th Annual General Meeting represents a key development for the company’s thousands of shareholders. With a total dividend of 7.3684 percent, a capital boost through bonus shares, and reinforced governance measures, NLG Insurance continues to strengthen its position as a reliable player in the Nepali market. As the company moves toward a paid-up capital of NPR 2.66 billion, it remains well-positioned to meet the higher capital requirements set by the insurance regulator while delivering sustainable value to its stakeholders.
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