Dividend History of National Life Insurance Company Limited (NLCIL) – The Oldest Life Insurance Company in Nepal

The National Life Insurance Company Limited (NLCIL) (formerly known as National life & General Insurance Co.Ltd.) offers high-quality insurance and financial services through its subsidiary companies. Established in Nepal in 1988 under the Nepal Company Act 1964 and the insurance Act 1968 of Nepal with the prime objective to meet the growing insurance requirements of the country. NLCIL was the first life insurance company in the country with an authorized capital of NPR 17 million and paid-up capital of NPR 2 million. It started operations on May 1, 1955, and has been growing steadily since then. It has been registered on Nepal Stock Exchange (NEPSE).

National Life Insurance Company Limited (NLICL), one of the oldest life insurance companies in Nepal, started to pay dividends from FY2009/10. Dividends increased by 86.16% YOY (Year-over-year) and 134.31% QOQ basis for 5 years period FY2010/11-FY2014/15. Dividends were up 40.68% YOY for the 3rd quarter FY2015/16, compared to the previous quarter i.e., 2nd quarter FY2015/16.

Going by financial performance and ratios, National Life Insurance Company Limited has always been a solid performer. As shown below, NLICL has managed to maintain a steady CAGR (Compound Annual Growth Rate) of 8.9% from 2010-to 2016 compared to IFC’s ( International Finance Corporation) average returns from life insurance companies of over 7.6%. For dividend information please refer to appendix A for historic and forecasted dividends, payout ratio, and dividend growth rates for all the years mentioned below.

Over 35 years ago, National Life Insurance Company Limited was established as a joint venture company with 45% shareholding by Nepalese promoters, 10% by foreign collaborators, 10% by Rashtriya Banijya Bank, and 35% shareholding by public investors. With more than Rs. 6 billion in life insurance business per year and around Rs. 1 billion third party general insurance business, NLICL is one of the largest financial service providers to both domestic and international markets. In case you are searching for investment opportunities, its dividend history is an important aspect when considering buying its shares as a good long-term investment option.