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.
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.