Motor Vehicle Insurance Limited has declared a K48.2 million annual cash dividend to Kumul Consolidated Holdings, following strong performance in its 2024 financial year.

The MVIL Board declared a dividend of K1.44 per share, amounting to K48,267,459.36, at its meeting on September 2, 2026.

The dividend is being paid to KCH, MVIL's shareholder, in line with the shareholder dividend policy and the company's achievement of its performance targets.

MVIL Chairman Dr John McKup said the dividend reflects the company's strong financial position and continued performance across its business operations.

“Our investment portfolio and our core third-party motor vehicle insurance business continues to perform strongly,” Dr McKup said.

He said this has been achieved through “prudent underwriting discipline, claims management and sound financial stewardship.”

Dr McKup said the K48.2 million dividend reflects both MVIL's strong capital position and its commitment to providing sustainable returns to the State.

“This $48.2 million dividend reflects two things. One is MVIL's solid capital position. And second, our commitment to delivering sustainable returns to the shareholder while maintaining the financial strength required to meet our obligations to every third-party policyholder across Papua New Guinea,” he said.

The dividend is based on 50 percent of MVIL's Net Operating Profit After Tax for the 2024 financial year, excluding revaluation gains.

Dr McKup said the dividend was also supported by a solvency assessment conducted by Deloitte. He said MVIL's financial performance demonstrates the importance of maintaining strong internal controls and responsible financial management.

“This result is built on discipline, basically,” Dr McKup said.

The latest payment brings MVIL's dividends to KCH over the past three years to K128.038 million. MVIL paid K36.839 million in dividends in 2022 and K42.931 million in 2023.

Dr McKup said the company's continued dividend payments demonstrate the board's focus on profitability, good governance and creating long-term value for the State.

“The fact that MVIL has paid dividends for many consecutive years is a testament to the board's focus, consistent profitability, good governance and long-term value creation for the State,” he said.

He said MVIL's mandate remains focused on protecting motorists through compulsory third-party insurance while maintaining its financial capacity to meet policyholder obligations.

“Our mandate is clear and that is to provide protection to motorists and ensure regulatory compliance with the Insurance Commissioner and ICCC and deliver quality services to the people of Papua New Guinea,” Dr McKup said.

KCH Managing Director Professor David Kavanamur said MVIL has demonstrated strong financial discipline through its consistent dividend payments to the State.

He said KCH has strengthened the process around dividend payments, including requiring state-owned enterprises to hold Annual General Meetings, declare dividends and complete solvency assessments and audited accounts before payments are made.

Professor Kavanamur thanked MVIL's board and management for maintaining the company's dividend record.

The K48.2 million cheque was presented by Dr McKup to Professor Kavanamur in Port Moresby in the presence of State-Owned Enterprises Minister William Duma.

The dividend is scheduled to be paid to KCH on September 15, 2026.