Eastland Insurance declares 10% dividend

Eastland Insurance Company Ltd, a first-generation general insurance company, has recommended a 10% dividend (7% cash and 3% stock) to its shareholders for the year ended 31 December, 2020.

The dividend was declared at the company's board meeting held on Thursday evening.

To secure approval of the declared dividend, an audited report, and other matters, the company will hold an annual general meeting (AGM) on 10 June, 2021. The record date for the AGM will be 28 April.

The company's operations include all types of general insurance business - fire, marine, motor, miscellaneous and engineering - as per the Insurance Act.

At the end of last year, Eastland posted earnings per share of Tk1.12, which was 19% lower than in the previous year.

During this period, the net profit of the company was Tk9.16 crore, which was Tk11.25 crore for the same period in the previous year.

Its net asset value per share stood at Tk21.32.

MA Rahman, secretary of the company did not comment on the net profit decline to this reporter.

According to a disclosure of the company, the dividend bonus has been declared due to the expansion of the company's business by enhancing its capital base. It plans to open a number of branches at key points in different districts.

Eastland Insurance was listed on the Dhaka Stock Exchange (DSE) in 1994. Its paid-up capital is Tk81.44 crore.

As of February this year, sponsors and directors hold 43.13% shares, institutions 23.48%, and general investors hold 33.39% shares of the company.

The last trading price of the company's shares was Tk29.60 per share at the DSE on Thursday.