NLG Insurance Dividend Declaration: Bonus Shares Worth Rs. 62.56M + Cash
11th May 2025, Kathmandu
NLG Insurance Company Limited has declared a dividend for its shareholders based on the profits from the fiscal year 2080/81. The announcement was made following a board meeting held on Friday.
NLG Insurance Dividend Declaration
The company will distribute a total of 2.631579% dividend on its current paid-up capital. NLG’s paid-up capital stands at Rs. 2.50 billion (Rs. 2,502,657,920). The dividend package includes 2.5% bonus shares and 0.131579% cash dividend, which will cover tax liabilities.
Bonus Shares Worth Over Rs. 62 Million
Out of the total dividend, NLG will issue Rs. 62.56 million worth of bonus shares. These shares will be distributed to shareholders once the dividend proposal is approved by both the Nepal Insurance Authority and the company’s Annual General Meeting (AGM).
The bonus shares are being issued from the retained earnings of the last fiscal year. By doing so, NLG aims to reward its shareholders while also increasing the company’s equity base.
Cash Dividend for Tax Adjustment
In addition to the bonus shares, the company will provide a cash dividend of Rs. 3.29 million. This amount represents 0.131579% of the paid-up capital. It is meant to fulfill the tax requirements associated with the distribution of bonus shares.
The cash component ensures compliance with tax obligations and prevents shareholders from having to bear tax expenses directly. NLG has followed regulatory norms by including this cash portion in the overall dividend proposal.
Approval Required from the Regulator and AGM
Before distributing the dividend, NLG Insurance must obtain the green light from the Nepal Insurance Authority. After that, the dividend must be ratified at the company’s upcoming Annual General Meeting.
Only after both approvals will the bonus shares and cash dividend be disbursed to shareholders. NLG will announce the book closure date after getting the necessary approvals. Shareholders registered by that date will qualify to receive the declared benefits.
Dividend Strategy Reflects Growth Focus
NLG’s latest dividend announcement highlights the company’s balanced approach. On the one hand, it is sharing profits with investors. On the other, it is retaining enough capital to support future expansion and strengthen financial reserves.
By issuing bonus shares, NLG is reinvesting earnings into its equity. This improves capital adequacy and enhances its capacity to underwrite more insurance policies in the future. Such strategies help build long-term value for shareholders.
The cash portion, although small, reflects regulatory compliance and financial discipline. It shows that NLG is mindful of its tax responsibilities while keeping shareholders’ interests in mind.
Track Record of Consistent Performance
Over the past few years, NLG Insurance has maintained a steady financial performance. The company has been meeting profitability targets while expanding its presence in Nepal’s insurance sector. It has also been consistent in rewarding its investors through dividends.
In the previous fiscal year as well, NLG had distributed a combination of bonus shares and cash dividends. This year’s announcement continues that tradition, reinforcing investor confidence.
The declared dividend comes at a time when the insurance industry in Nepal is undergoing regulatory reforms and digital transformation. Companies like NLG are positioning themselves for long-term growth through capital strengthening and innovation.
Shareholders Can Expect Benefits Soon
Once the dividend proposal clears the necessary processes, shareholders can expect to receive their entitlements. Bonus shares will be credited to their Demat accounts, and the cash dividend will be transferred to their linked bank accounts.
NLG will provide further updates regarding the record date and distribution timeline once approvals are in place. Investors are advised to stay informed through official notices.
Looking Ahead
NLG Insurance remains focused on building shareholder value. The dividend declaration is part of its commitment to growth, stability, and transparency.
The company plans to continue leveraging its strong financial base to explore new opportunities in the insurance market. It also aims to enhance service quality and product offerings to meet the evolving needs of customers in Nepal.
As the industry becomes more competitive, NLG’s strategy of blending shareholder returns with business expansion could provide a sustainable edge.
For more: NLG Insurance Dividend Declaration
