Nepal Life Insurance Company Q2 Report: Net Profit Surges 9.45%, Net Premiums Rise 12.26%, Investment Income at Rs. 9.22 Arba
Sun, Feb 9, 2025 9:52 AM on Financial Analysis, Company Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has delivered a remarkable financial performance in the second quarter of fiscal year 2081/82, achieving a 9.45% increase in net profit. The company’s net profit rose to Rs. 46.81 Crores, up from Rs. 42.77 Crores in the same quarter of the previous year.
NLIC's financial base includes a paid-up capital of Rs. 8.2 Arba, with additional reserves comprising Rs. 2.38 Arba in retained earnings, Rs. 78.26 Crores in other equity, and Rs. 1.3 Arba in catastrophe reserves.
The quarter saw a 12.26 % growth in net premiums, totaling Rs. 22.12 Arba, alongside Rs. 9.22 Arba generated from investments, loans, and other financial activities. However, net claims surged by 15.94% to Rs. 28.54 Arba, and commission expenses rose by 9.82% to Rs. 1.63 Arba.
NLIC’s key financial indicators remain strong, with an annualized earnings per share (EPS) of Rs. 11.42, a net worth per share of Rs. 154.55, and a Price-to-Earnings (P/E) ratio of 70.47.
Major Highlights:
* Figure is of Immediate Fiscal Year Ending
| Particulars (In Rs '000) | Nepal Life Insurance | ||
|---|---|---|---|
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Paid Up Capital | 8,201,966.55 | 8,201,966.55* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Catastrophe Reserves | 1,308,328.69 | 1,263,777.60* | 3.53% |
| Retained Earnings | 2,383,470.00 | 1,923,276.30* | 23.93% |
| Other Equity | 782,666.32 | 758,278.15* | 3.22% |
| Life Insurance Fund | 218,417,621.26 | 196,734,787.83* | 11.02% |
| Investments | 179,186,202.04 | 164,157,721.59* | 9.15% |
| Net Premium | 22,129,379.68 | 19,712,378.64 | 12.26% |
| Income from Investment, Loan and others | 9,227,346.43 | 7,483,801.59 | 23.30% |
| Claim Payment (Net) | 28,542,903.42 | 24,618,982.53 | 15.94% |
| Commission Expenses | 1,638,710.37 | 1,492,205.54 | 9.82% |
| Net Profit | 468,150.48 | 427,737.28 | 9.45% |
| Annualized EPS (In Rs.) | 11.42 | 10.43 | 9.45% |
| Net Worth per Share (In Rs.) | 154.55 | 148.10 | 4.36% |
| PE Ratio | 70.47 | - | - |
