Popular Life Maintains 20% Cash Dividend

Popular Life Insurance PLC has recommended a 20 per cent cash dividend for the 2025 financial year, maintaining the same shareholder payout despite a sharp decline in annual earnings, according to disclosures published on the Dhaka Stock Exchange (DSE) on 28 June.

The decision means shareholders will receive the same level of cash dividend as they did in the previous year, even though the insurer’s earnings per share (EPS) fell by 42 per cent compared with 2024. The recommendation is subject to approval by shareholders at the company’s forthcoming annual general meeting (AGM).

Investors reacted cautiously to the announcement. Shares of Popular Life Insurance declined by 1.12 per cent on the DSE, closing at Tk61.60 apiece following the disclosure.

Financial data released by the company indicate that its net profit fell significantly during the year. Based on the reported EPS and the company’s outstanding shares, Popular Life Insurance posted a profit of Tk8.88 crore for 2025, down sharply from Tk15.32 crore recorded in 2024.

The company’s balance sheet also reflected weaker financial indicators compared with the previous year. Its net asset value (NAV) per share stood at Tk78.10 at the end of 2025, compared with Tk89.01 a year earlier, indicating a decline in shareholders’ equity on a per-share basis.

Operating cash flow also deteriorated considerably during the period. Net operating cash flow per share remained in negative territory at Tk18.86, a substantial deterioration from the negative Tk3.45 reported at the end of 2024. A persistently negative operating cash flow suggests that the company’s core business activities generated insufficient cash during the reporting period, despite remaining profitable on paper.

Despite the weaker earnings and cash flow position, the board opted to maintain its dividend, signalling confidence in the company’s capital position and its commitment to providing a stable return to shareholders. Maintaining dividend payouts despite earnings volatility is not uncommon among established listed insurers seeking to preserve investor confidence, although such decisions are often closely monitored by market participants.

To secure shareholder approval for the proposed dividend, Popular Life Insurance has scheduled its annual general meeting for 22 September. The meeting will be held through a virtual digital platform, allowing shareholders to participate remotely.

The company has fixed 20 August as the record date to determine shareholders eligible to receive the proposed cash dividend and participate in the AGM.

Alongside its financial results, Popular Life Insurance continues to pursue expansion initiatives. On 21 May, the insurer informed its board of plans to develop a joint-venture multi-storey commercial building on its own land in the Badda area of the capital. The proposed project will be constructed on approximately 115.56 decimals of land and forms part of the company’s broader property development strategy.

Established as one of Bangladesh’s prominent life insurance companies, Popular Life Insurance has been listed on the country’s stock exchanges since 2005. Over the years, it has built a substantial presence in the domestic insurance sector while maintaining a diversified shareholder base.

According to the latest shareholding data available as of May, sponsor-directors collectively held 23.70 per cent of the company’s shares. Institutional investors owned 24.57 per cent, while the general public accounted for the remaining 51.73 per cent, making retail investors the largest shareholder group.

A summary of the company’s key financial and corporate indicators is provided below.

While Popular Life Insurance has maintained its dividend policy for another year, investors are likely to watch closely whether the company can reverse the decline in profitability, strengthen its operating cash flow and improve its balance sheet in the coming financial year.