Insurance stock trades ex-dividend, shares fall

While announcing its earnings for the quarter ending March 2022, the General Insurance Corporation of India (GIC) said that its board has approved declaration of interim dividend Rs. 2.25 per equity share (subject to deduction of TDS) on the face value of ₹5 each (i.e. 45% of paid-up equity share capital), for the financial year 2021-22. 

The board of directors has approved fixation of the record date as Wednesday, 8th June 2022, for the purpose of ascertaining eligibility of shareholders for payment of interim dividend on equity paid-up share capital of the Corporation for the financial year 2021-22.

GIC Re shares were trading over a per cent lower at ₹119 apiece on the BSE in Tuesday's early deals, as the stock started trading ex-dividend ahead of its record date.

“The said interim dividend shall be paid/dispatched to those shareholders whose names appear as beneficial owners in the statement(s) furnished by the Depository(ies) as on the close of business hours on Wednesday, 8th June 2022 in respect of shares held in electronic form,” GIC Re had informed in an exchange filing.

The dividend shall be paid as members in the Register of members on Wednesday, 8th June 2022 in respect of physical shares. Further, the aforesaid interim dividend shall be paid/ dispatched on or before Saturday, 25th June 2022, the company added.

As a sole reinsurer in the domestic reinsurance market, GIC Re provides reinsurance to the direct general insurance companies in the Indian market. Shares of the company have declined about 41% in a year's period whereas the insurance stock is down about 15% in 2022 (YTD) so far.