Pioneer Insurance declares 30% dividend
Pioneer Insurance Company Ltd has recommended a 30% dividend – 25% cash and 5% stock – for the year that ended on 31 December 2022.
In its disclosure on the Dhaka Stock Exchange (DSE) website on Tuesday, the company said it declared the stock dividend in order to increase its paid-up capital, which in turn will strengthen its financial status in both local and global insurance markets. The stock dividend will be paid out of the company's accumulated profit.
To secure approval of the declared dividends, audited report, and other matters, the company will hold an annual general meeting (AGM) on 31 May 2023. The record date has been fixed on 27 April.
In 2021, Pioneer Insurance declared a 35% dividend – 25% cash and 10% stock – for its shareholders.
Pioneer Insurance Company was incorporated in 1996 and listed on the stock market in 2001. It provides services to national and multinational companies in different sectors.
In 2022, the company's net profit declined by 12% year-on-year and stood at Tk51.57 crore.
Its earnings per share stood at Tk6.09, and net asset value per share at Tk46.88 at the end of 2022.
As of 28 February 2023, the sponsors and directors jointly held 45.62% shares, institutions 25.03%, and the general public 29.35% shares in the company.
The last trading price of each share of the company on the DSE was Tk71.50 on Tuesday.
Currently, there are 78 insurance companies – 32 life and 46 non-life – in Bangladesh. Of them, 56 are publicly listed.
Experts have been saying for a long time that Bangladesh is one of the most untapped insurance markets in terms of penetration rate.
They say awareness and a strong culture of insurance service behind economic activities can help the industry thrive.