Jun Mon 2022 12:51:54
Kathmandu. Investors in insurance companies, which are under pressure to raise capital under the regulator's direction, have seen disappointing returns over the past five years. Companies that have been raising capital in the past have also distributed bonus shares, but their condition is very bad based on cash dividends.
United, Azod, General, Sanima General, National, Oriental and Rastriya Bima have not paid any dividend to the shareholders in the last five years, while old and established companies like Shikhar, Sagarmatha, Everest, IME General, NLG and Prudential have also paid cash to the shareholders in the last five years. Have not been able to pay dividends.
Cash dividend payers have also paid less. NECO has distributed 10.92 percent, Premier 11.8 percent, Nepal Insurance 5.47 percent, Prabhu 13.44 percent, Siddhartha 5.63 percent and Lumbini General 6.55 percent cash dividend (in 5 years).
Most insurance companies have distributed more bonus shares than cash in five years due to the compulsion to increase capital. But Himalayan General Insurance has distributed more cash dividends than bonuses. Himalayan General, which distributed 13.65 percent bonus shares during the review period, has distributed 22.85 percent cash dividend. As a result, the founding shareholders seem to have benefited more than the general shareholders of insurance.
Among the non-life insurance companies, Premier Insurance has paid the highest dividend in the last five years. Premier has already distributed 123.57 percent dividend to the shareholders from FY 2073/74 to FY 2077/78. Which includes bonuses and cash dividends. Premier shareholders have received a total bonus of 111.77 percent and a cash dividend of 11.8 percent in five years.