Suryajyoti Life Insurance Announces Cash Dividend
21st December 2025, Kathmandu
The board of directors of Suryajyoti Life Insurance Company Limited has officially proposed a significant dividend distribution for its shareholders following the conclusion of the fiscal year 2081 2082. During a recent board meeting the company decided to distribute a thirteen percent cash dividend from its distributable profits. This announcement is particularly noteworthy as it reflects the post merger financial strength of the entity which was formed through the historic union of Surya Life Insurance and Jyoti Life Insurance. The decision to provide a cash return highlights the commitment of the management to delivering consistent value to its investors while maintaining a robust capital base in an increasingly competitive insurance market.
Suryajyoti Life Cash Dividend
The proposed dividend is calculated based on the current paid up capital of the company which stands at five point zero one billion Nepalese rupees. At a rate of thirteen percent the total cash payout amounts to approximately six hundred and fifty one point five five million rupees. This figure includes the amount required for dividend tax ensuring that the thirteen percent is the gross distribution to the shareholders. For many retail investors in the Nepal Stock Exchange this cash dividend provides a reliable stream of liquidity and reinforces confidence in the long term stability of the life insurance sector.
Understanding the Approval and Distribution Process
It is important for shareholders to note that the announcement by the board is the first step in a multi stage regulatory process. Before the cash can be deposited into the bank accounts of the investors the proposal must undergo a rigorous review by the Nepal Insurance Authority which serves as the primary regulator for all insurance companies in Nepal. The authority examines the actuarial valuations and the overall financial health of the company to ensure that the dividend distribution does not compromise the ability of the insurer to meet its future policyholder obligations.
Once the Nepal Insurance Authority provides its formal approval the company will then present the dividend proposal for final endorsement at its upcoming Annual General Meeting. The AGM provides a platform for shareholders to discuss the performance of the company over the last fiscal year and vote on the dividend. Following the approval at the AGM the company will announce a book closure date. Only those shareholders who hold shares of the company before the book closure date will be eligible to receive the thirteen percent cash dividend.
Financial Performance and Market Position
The dividend announcement comes on the heels of a steady financial year for Suryajyoti Life Insurance. According to the fourth quarter reports for the fiscal year 2081 2082 the company demonstrated resilience with a total insurance fund that grew significantly to over forty two billion rupees. While net profits saw a modest increase the sharp rise in net premium income—which surged by over twenty two percent to reach eleven point one eight billion rupees—indicates strong business expansion and successful policy sales across its nationwide network.
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The earnings per share of the company remained stable around seven rupees while the net worth per share stood at approximately one hundred and twenty six rupees. These indicators suggest that the company is effectively balancing its operational expenses with its revenue growth. The decision to opt for a cash dividend rather than bonus shares at this time might be seen as a strategic move to manage the capital structure of the bank without further diluting the share value especially since the paid up capital is already well above the regulatory minimum required for life insurance companies in Nepal.
Impact on the Insurance Industry and Investors
Suryajyoti Life is among the first few life insurance companies to declare dividends for the fiscal year 2081 2082. This proactive announcement sets a benchmark for other players in the industry and contributes to a positive sentiment in the capital market. For investors the thirteen percent return is competitive compared to the interest rates offered by commercial banks on savings accounts. Furthermore as a life insurance company the long term growth potential and the stability of the insurance fund provide an added layer of investment security.
The company has urged its shareholders to ensure that their Demat accounts are updated and that their bank account details are correctly linked to their DP accounts to avoid any delays in the electronic transfer of the dividend funds. In line with the push for digital banking in Nepal the dividend will be credited directly to the bank accounts of the shareholders through the central clearing system once all formalities are completed.
Conclusion and Future Outlook
In conclusion the declaration of a thirteen percent cash dividend by Suryajyoti Life Insurance Company Limited is a testament to its successful merger and its ability to generate distributable profit in a challenging economic environment. With a strong capital base of five billion rupees and a growing portfolio of life insurance products the company is well positioned for future growth. Shareholders can look forward to the upcoming Annual General Meeting for more detailed insights into the strategic roadmap of the company for the next fiscal year.
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