United Insurance declares 15% cash dividend

United Insurance Company Limited, a publicly listed non-life insurer, has recommended a 15% cash dividend for its shareholders for 2024.

According to officials, the new board proposed the dividend to reinforce shareholder trust and confidence, fulfilling a commitment made when the current owners took charge.

Following the dividend announcement through the Dhaka Stock Exchange (DSE), its share closed 0.54% higher at Tk37.50.

According to the price-sensitive statement, its earnings per share (EPS) in 2024 increased by 27% to Tk2.26 compared to the previous year.

The company said its EPS has increased due to higher investment income and lower claim expenses.

To approve the dividend and audited financial statement, the company's annual general meeting (AGM) will be held on 26 June through the digital platform, and the record date has been fixed on 20 May.

In November last year, United Group entrepreneurs bought Duncan Brothers and its associates' stakes in United Insurance.

United Group acquired 2.37 crore shares of United Insurance for Tk84.10 crore on 11 November.

DSE data shows that United Group founders Hasan Mahmood Raja, Akhter Mahmud Rana, and Khandaker Moinul Ahsan Shamim, along with their family members, acquired United Insurance shares at Tk35.50 each.

They established United Group in 1978, which engaged in various sectors including power, real estate, retail and service, healthcare, manufacturing, education and port, terminal and shipping. These entrepreneurs own United Power, which is also listed on the stock exchanges.

According to the shareholding report as of March, the sponsors and directors hold 59.90% shares in United Insurance, while institutional investors have 19.54% and the remaining 20.56% shares owned by the general shareholders.