How a lot dividend did marketplace chief Nepal Lifestyles and Shikhar pay to shareholders?


Kathmandu. Two companies have been leading in the Nepali insurance market. So far, Nepal Life Insurance has been leading the life insurance business and Shikhar Insurance has been leading the non-life insurance business.

According to the Insurance Committee, the regulatory body for the insurance sector, they are far ahead of other companies. They also have a good position in the secondary market. In the last trading session, the share price of Shikhar was Rs 1,717 per share and that of Nepal Life was Rs 1,629 per share.

As per the data of the Insurance Committee till last September, Shikhar Insurance, which is leading in the non-life insurance business, has collected over one billion premiums. The company has managed to earn the same amount of insurance premium in the first quarter of the current fiscal year. That is Rs 100 million more than Sagarmatha Insurance, which is a close competitor to Shikhar.

On the other hand, Nepal Life has collected premium of Rs 2.28 billion in the first three months of the current fiscal year. This is Rs 480 million more than the life insurance corporation which is a close competitor of Nepal Life.

These two companies, which have taken the lead in separate businesses, are at the forefront not only in insurance premiums, but also in most of the titles. Attempts have been made to analyze the dividend history of both the companies to the shareholders.

The peak dividend history so far

Shikhar Insurance has been doing non-life insurance business for 17 years. The company has been operating non-life insurance business since October 10, 2006 with the objective of providing economic services in the country and contributing to economic development.

The company has started distributing dividends to the shareholders from the fiscal year 2063/64, two years after it came into operation. Looking at the dividend history of 15 years since it started distributing dividends, it seems that the company has succeeded in paying 10 years dividend to the shareholders. During this period, the company has distributed a minimum of 7.50 percent and a maximum of 60 percent dividend.

The shareholders of the company had received dividend from the profit of the fiscal year 2063/64 for the first time. They appear to have received a 7.50 percent dividend as the company’s first dividend. After that, the company did not distribute dividend to the shareholders from the profit of the fiscal year 2064/65.

According to the company’s dividend history, the insurance company has distributed 13.50 percent and 12.63 percent dividend to the shareholders from the profits of FY 2065/66 and FY 2066/67 respectively. Which is more than the first year.

Similarly, the company could not distribute dividend for the fiscal year 2067/68.

After that, the company had distributed dividends to the shareholders for six consecutive years. Examining the history, it is seen that the company has distributed high dividend from FY 2068/69 to FY 2073/74. Out of the same fiscal year, the company has distributed 60 percent dividend to the shareholders from the highest profit of the fiscal year 2072/73. Which is the highest ever distributed by a company.

After that, the company could not pay dividend to the shareholders for another two years. The company which did not increase its dividend in FY 2074/75 and FY 2075/76 seems to have reduced its dividend in FY 2076/77. The company has paid only 27.769 percent dividend to the shareholders from the profit of that year.

Similarly, the company has not yet declared dividend for the last fiscal year 2077/78.

12 years dividend history of Nepal Life

Nepal Life Insurance has been operating life insurance business since April 6, 2010. Older than Shikhar, this insurance company has been in the life insurance business for over 20 years.

Looking at the company’s dividend history from FY 2065/66 to FY 2076/77, it is seen that the company has been distributing dividends to the shareholders for most of the year. During this period, the insurance company has distributed minimum 20 percent and maximum 126.32 percent dividend to the shareholders.

Nepal Life had distributed minimum 20 percent dividend in FY 2065/66 and maximum 126.32 percent dividend in FY 2068/69.

Insurance, which distributed dividends in the fiscal year 2065/66, did not distribute dividends for the next two fiscal years. And, at the same time in the fiscal year 2068/69, bumper dividend was declared, which is still high.

Since then, the company has not declared dividend for the two fiscal years 2076/77 and 2077/78.





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