Green Delta Insurance declares 30% cash dividend
Consolidated EPS grew 27% thanks to IDRA’s postponement of agent commission for non-life insurers
Green Delta Insurance has declared a 30% cash dividend for its shareholders for the financial year that ended on 31 December 2021.
The dividend was recommended at a meeting of the company's board of directors held on 14 February.
After the company's dividend announcement on the Dhaka Stock Exchange website on Tuesday, its stock price fell by 4.76% and stood at Tk96 per share at the end of the trading session.
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To approve the dividend and audited financial statements, the company will conduct an annual general meeting on 30 March. The record date is 8 March.
Green Delta paid 24.5% cash and 7.5% stock dividends to the shareholders for the 2020 financial year.
In 2021, the company's consolidated earnings per share (EPS) grew 27% to Tk8.43 from the previous year's EPS, thanks to the Insurance Development and Regulatory Authority (IDRA) for postponing the 15% agent commission on income from the insurance premium.
On 5 February last year, IDRA issued a circular regarding the postponement of insurance agent commission for non-life insurers until further notice.
The insurance regulator took this decision because non-life insurance companies continued to pay a large amount to agents as commission, violating the 15% limit.
Besides, a booming capital market also helped the company to post handsome profit growth.
