The board of directors of Rupali Life Insurance Company Limited has recommended a 12% cash dividend for the year ended 31 December 2025, maintaining shareholder returns despite reporting an underwriting deficit in the first half of 2026.

The recommendation was disclosed today (21 July) through the Dhaka Stock Exchange (DSE). The insurer paid a 10% cash dividend for 2024.

Shareholders will vote on the proposal at the company's annual general meeting (AGM), scheduled for 24 September 2026 at 10:00am on a digital platform. The record date has been set for 20 August 2026.

In line with stock exchange regulations, the company's shares traded without a price limit yesterday following the dividend declaration. The share price of the insurer rose 1.21% to Tk91.70 on the DSE.

The dividend recommendation comes despite continued pressure on the insurer's core underwriting business.

According to its life revenue account, Rupali Life posted a Tk7.09 crore deficit in the January-March quarter of 2026, improving from a Tk15.05 crore deficit a year earlier.

The trend, however, reversed in the April-June quarter, when the company reported a Tk8.11 crore deficit, compared with a Tk0.15 crore surplus in the same period of 2025.

As a result, the insurer recorded a first-half cumulative deficit of Tk15.21 crore, slightly higher than the Tk15 crore deficit in the corresponding period last year.

Despite the underwriting losses, Rupali Life continued to strengthen its policyholders' fund. Its Life Insurance Fund stood at Tk486 crore as of 30 June 2026, up from Tk480 crore a year earlier, an increase of Tk5.76 crore.

The fund had reached Tk494 crore at the end of March 2026, compared with Tk480 crore a year earlier, reflecting steady growth in long-term policyholders' assets despite fluctuations in quarterly operating performance.

Life insurers in Bangladesh typically determine dividends based on their overall financial position, including actuarial valuation, investment income, accumulated life fund and regulatory capital requirements, rather than quarterly underwriting performance alone. 

As a result, temporary deficits in the life revenue account do not necessarily prevent dividend payments if regulatory requirements are met and the insurer remains financially sound.

The final dividend is subject to shareholders' approval at the AGM.