Ajod Insurance Net Profit Increases By 11.26% in Q3; Company To Merge With United Insurance At 100:90 Swap Ratio
Sun, May 7, 2023 2:38 PM on Latest, Financial Analysis, Stock Market,
Ajod Insurance Company Limited (AJOD) has published its third-quarter report of the fiscal year 2079/2080 with an increase in Net Profit by 11.26%.
The company’s net profit increased to Rs. 10.47 crores in this quarter from Rs. 9.41 crores in the corresponding quarter of last fiscal year.
As per the unaudited report for the third quarter published today, Ajod Insurance has a paid-up capital of Rs. 1 Arba with a reserve of Rs. 20.38 crores.
The company has an insurance fund of Rs. 22.39 crores and a contingent fund of Rs. 2.02 crores.
The Net Premium rose by 43.27% to Rs. 52.02 crores in FY 2079/2080 from Rs. 36.31 crores in the corresponding quarter of the previous year. The company has earned Rs. 4.38 crores from income from investment, loans, and other headings.
The company’s Net claim increased by 29% to Rs. 23.49 crores in this quarter. The company’s number of policies stood at 104,909 till Q3 of 2079/2080.
Its annualized earnings per share (EPS) stood at Rs. 13.96 whereas Net worth per share stood at Rs. 144.81. The company traded at a P/B multiple of 30.80 times.
Also, the final merger agreement between United Insurance Company (Nepal) Limited (UIC) and Ajod Insurance Limited (AIL) has been completed and passed.
As per the initial merger agreement, it has been agreed that the swap ratio between UIC and AIL will be 100:90, implying that the number of shares of AIL shareholders will decrease by 10% in the newly merged company. Likewise, the name of the company formed after the merger has been fixed to be United Ajod Insurance.
Major Highlights:
| Particulars (In Rs '000) | Ajod Life Insurance | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 1,000,000.00 | 1,000,000.00 | 0.00% |
| Reserve and Surplus | 203,800.77 | 139,500.32 | 46.09% |
| Insurance Fund | 223,900.92 | 159,200.24 | 40.64% |
| Contingent Fund | 20,200.00 | 13,100.00 | 54.20% |
| Net Premium | 520,200.36 | 363,100.89 | 43.27% |
| Re-Insurance Income | 179,000.98 | 174,300.00 | 2.70% |
| Income from Investment, Loan and others | 43,800.09 | 30,900.93 | 41.74% |
| Claim Payment (Net) | 234,900.46 | 182,100.28 | 29.00% |
| Agent Commission | 32,800.14 | 27,900.74 | 17.56% |
| Net Profit | 104,700.62 | 94,100.38 | 11.26% |
| No of Policies | 104,909.00 | 96,749.00 | 8.43% |
| EPS (In Rs.) | 13.96 | 12.55 | 11.26% |
| Net Worth per Share (In Rs.) | 144.81 | ||
| PE Ratio | 30.80 | - | - |
