As Nepal’s non-life insurance sector continues its steady consolidation, NECO Insurance Limited has maintained strong growth and a robust capital base, demonstrating resilience in underwriting for the fiscal year ending Ashadh 2082.
The company has officially announced its 30th Annual General Meeting (AGM) on Falgun 12, 2082 (February 24, 2026) at Amritbhog, Kalikasthan, Kathmandu, where significant dividend distribution and bonus shares will be proposed.
Dividend and Bonus Share Details:
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A 10% bonus share distribution has been proposed.
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Alongside bonus shares, a 0.5263% cash dividend is proposed for tax coverage.
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Post issuance, paid-up capital will rise from NPR 2.01 billion to approximately NPR 2.21 billion.
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Book closure is set for Falgun 1, 2082, ensuring eligible shareholders receive the rewards.
Financial Performance:
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Total premium: NPR 3.44 billion, up from NPR 2.89 billion last year.
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Net premium: NPR 1.59 billion.
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Commission income: NPR 33.53 million.
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Investment income: NPR 28.69 million.
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Total income: NPR 2.28 billion, keeping NECO among top revenue generators in the sector.
Claims and Operating Expenses:
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Net claims: NPR 882.58 million, showing effective claims management.
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Operating expenses: NPR 482.09 million.
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Profit before tax: NPR 851.22 million.
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Final net profit: NPR 578.84 million.
Financial Strength:
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Total assets: NPR 11.03 billion.
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Insurance fund: NPR 2.11 billion, special reserves: NPR 2.45 billion.
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Shareholder equity: NPR 6.31 billion, well above regulatory requirements.
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Cash and equivalents: NPR 410.59 million, sufficient for short-term obligations.
Investor Perspective:
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EPS: NPR 22.01 per share, net worth per share remains strong.
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The company is expanding digital insurance platforms and microinsurance products in rural areas.
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The upcoming 10% bonus shares are expected to increase both shareholder value and market share.
