Shikhar Insurance Announces Dividend: Bonus and Cash Details
17th December 2025, Kathmandu
Shikhar Insurance Company Limited which is one of the leading non life insurance providers in Nepal has officially announced its dividend distribution plan for the shareholders. The decision was finalized during a recent meeting of the Board of Directors. This announcement follows the tradition of the company to share its financial success with the investors who have supported its growth over the years. The dividend will be distributed from the distributable profit accumulated during the previous fiscal year of 2080/81 and 2081/82.
Shikhar Insurance Announces Dividend
According to the official board decision Shikhar Insurance will distribute a 6 percent bonus share based on its current paid up capital. Along with the bonus shares the company has also proposed a 0.3158 percent cash dividend which is specifically intended to cover the tax obligations arising from the distribution of the bonus shares. This brings the total dividend payout to 6.3168 percent for the year. This move is seen as a way to increase the capital base of the company while providing immediate tax relief to the shareholders.
Understanding the Financial Strength of Shikhar Insurance
Shikhar Insurance has consistently maintained a strong position in the non life insurance market of Nepal. The current paid up capital of the company stands at approximately 2.92 billion rupees. With the addition of the 6 percent bonus shares the capital base will expand even further helping the company to meet the regulatory capital requirements set by the Nepal Insurance Authority. This expansion of capital is essential for the company to take on larger risks and expand its insurance portfolio across various sectors like aviation and property and motor insurance.
The company has a history of delivering stable returns to its investors. In previous years it has often provided double digit dividends which has made it a favorite among stock market participants in the Nepal Stock Exchange. The current dividend of over 6 percent reflects a balanced approach to capital management especially in a year where the insurance industry has faced various economic challenges and a high volume of claims.
The Dividend Approval Process and Next Steps
It is important for shareholders to note that the proposed dividend is not yet final. According to the regulatory framework in Nepal all dividend proposals from insurance companies must first be approved by the Nepal Insurance Authority. The authority will review the financial health of Shikhar Insurance and ensure that the company has maintained adequate reserves and capital adequacy ratios before giving the green light for the distribution.
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Once the regulatory approval is obtained the dividend proposal will be presented at the upcoming Annual General Meeting of Shikhar Insurance Company Limited. The shareholders will then have the opportunity to discuss and formally endorse the dividend. Only after the successful endorsement at the Annual General Meeting will the bonus shares be credited to the demat accounts of the eligible shareholders and the cash dividend will be processed. The book closure date for this purpose will be announced by the company in the near future which will determine who is eligible to receive these benefits.
Performance Highlights and Market Position
Shikhar Insurance continues to lead the market with a significant share of the total premium collected in the non life insurance segment. The company has over one hundred branches spread across the country and a large team of dedicated professionals. Its commitment to quick claim settlement and customer service has earned it several awards and a high credit rating of AA minus from ICRA Nepal. This rating indicates a high degree of safety regarding the timely servicing of financial obligations.
The company is also active in corporate social responsibility and recently marked its twenty first anniversary with a large scale blood donation drive at its head office in Thapathali. Such activities help to build trust with the community and strengthen the brand value of the company. As Shikhar Insurance moves forward its focus remains on innovation and the introduction of internationally standard products that meet the evolving needs of the Nepali market.
Conclusion and Future Outlook for Shareholders
The announcement of the 6.3168 percent total dividend is a positive signal for the shareholders of Shikhar Insurance. It demonstrates the ability of the company to remain profitable and share those profits even while focusing on capital growth. For long term investors the increase in the number of shares through the 6 percent bonus is a way to benefit from the future growth and potential price appreciation of the stock.
As the company prepares for its next Annual General Meeting shareholders are encouraged to stay updated with the official notices regarding the book closure date and the meeting venue. By participating in the formal process and keeping track of the regulatory approvals investors can ensure they make the most of their investment in Shikhar Insurance.
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