Popular Life Insurance PLC has recommended a 20 per cent cash dividend for the 2025 financial year, maintaining its shareholder payout despite a sharp decline in earnings and weaker financial indicators, according to disclosures published by the Dhaka Stock Exchange (DSE) on 28 June.
The board’s decision keeps the cash dividend unchanged from the previous year, even though the company’s earnings per share (EPS) fell by 42 per cent compared with 2024. The proposed dividend is subject to shareholder approval at the company’s upcoming annual general meeting (AGM).
The announcement received a subdued response from investors. Shares of Popular Life Insurance slipped 1.12 per cent on the DSE to close at Tk61.60 apiece following the disclosure, reflecting cautious market sentiment over the insurer’s financial performance.
The company’s profitability weakened significantly during the year. Based on its reported EPS and outstanding shares, Popular Life Insurance posted a net profit of Tk8.88 crore in 2025, a sharp fall from Tk15.32 crore earned in the previous financial year.
Its balance sheet also showed signs of deterioration. Net asset value (NAV) per share declined to Tk78.10 at the end of 2025 from Tk89.01 a year earlier, indicating a reduction in the company’s underlying asset value attributable to each share.
Cash flow performance weakened even more noticeably. Net operating cash flow per share remained negative at Tk18.86, compared with negative Tk3.45 at the end of 2024. The wider negative cash flow suggests the insurer generated less cash from its core operations during the year despite remaining profitable, a metric that investors typically monitor closely when assessing a company’s financial health.
Even so, the board chose to maintain its dividend, signalling its intention to provide a consistent return to shareholders despite a challenging financial year. Stable dividend payments are often viewed positively by income-focused investors, although maintaining payouts amid declining earnings may also raise questions about future sustainability if profitability does not recover.
The company has scheduled its annual general meeting for 22 September, when shareholders will vote on the proposed dividend and other agenda items. The meeting will be conducted through a virtual digital platform.
To determine eligibility for the dividend, Popular Life Insurance has fixed 20 August as the record date for shareholders.
Alongside its financial disclosures, the insurer continues to pursue expansion initiatives. On 21 May, the company informed its board that it had decided to develop a joint-venture multi-storey building on its own land in the Badda area of Dhaka. The proposed project will be constructed on approximately 115.56 decimals of land and forms part of the company’s long-term investment strategy.
Popular Life Insurance has been listed on Bangladesh’s capital market since 2005 and remains one of the country’s established life insurance providers. Its ownership structure reflects a broad investor base. As of May, sponsor-directors 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.
The company’s latest financial and corporate indicators are summarised below:
| Indicator | 2025 | 2024 |
|---|---|---|
| Recommended cash dividend | 20% | 20% |
| Share price after announcement | Tk61.60 | — |
| Share price movement | -1.12% | — |
| Net profit | Tk8.88 crore | Tk15.32 crore |
| Earnings per share (EPS) | Down 42% year-on-year | — |
| Net asset value (NAV) per share | Tk78.10 | Tk89.01 |
| Net operating cash flow per share | -Tk18.86 | -Tk3.45 |
| Annual general meeting | 22 September | — |
| Record date | 20 August | — |
| Listing year | 2005 | — |
| Sponsor-directors’ shareholding | 23.70% | — |
| Institutional investors’ shareholding | 24.57% | — |
| General public shareholding | 51.73% | — |
While Popular Life Insurance has maintained its dividend for another year, its weaker earnings, declining net asset value and widening negative operating cash flow are likely to remain key areas of focus for investors. Market participants will be watching closely to see whether the insurer can restore profitability and improve cash generation in the coming financial year while sustaining returns to shareholders.