Nepal Life Insurance Company Records 12.90% Surge in Net Profit in Q2; Life Insurance Fund at Rs. 1.83 Kharba
Wed, Feb 7, 2024 7:03 AM on Financial Analysis, Company Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has reported a significant 12.90% increase in its net profit, reaching Rs. 42.77 crore in the current quarter compared to Rs. 37.88 crore in the corresponding quarter last year.
NLIC has a paid-up capital of Rs. 8.2 Arba and a share premium of Rs. 4.38 Crores. Additionally, the company has demonstrated financial prudence with Rs. 1.03 Arba in retained earnings, Rs. 17.47 Crores in other equity, and Rs. 1.04 Crores in catastrophe reserves. The company maintains a life insurance fund of Rs. 1.83 Kharba.
In Q2 FY 2080/81, NLIC witnessed a 7.13% increase in net premiums, totaling Rs. 19.71 Arba compared to the previous year. The company showcased its financial acumen by generating a commendable Rs. 7.48 Arba from income derived from investments, loans, and other financial activities.
However, it's important to note that the quarter also experienced a 10.88% increase in net claims, amounting to Rs. 24.95 Arba.
Key financial indicators highlight NLIC's strong performance, with an annualized earnings per share (EPS) of Rs. 10.42, net worth per share of Rs. 128.01, and a P/E ratio of 62.84 times.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Life Insurance Company | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 8,207,966.55 | 8,207,966.55* | 0.00% |
| Share Premium | 43,839.63 | 43,839.63* | - |
| Catastrophe Reserves | 1,048,482.68 | 1,005,708.96* | 4.25% |
| Retained Earnings | 1,031,796.83 | 651,297.39* | 58.42% |
| Other Equity | 174,740.34 | 170,276.22* | 2.62% |
| Life Insurance Fund | 183,654,371.27 | 165,515,838.18* | 10.96% |
| Net Premium | 19,712,378.64 | 18,400,045.33 | 7.13% |
| Interest Income on Loan to Policyholders | 2,037,825.62 | 1,574,940.82 | 29.39% |
| Income from Investment, Loan and others | 7,483,802.59 | 6,545,805.85 | 14.33% |
| Claim Payment (Net) | 24,959,064.59 | 22,510,556.23 | 10.88% |
| Commission Expenses | 1,492,205.54 | 1,538,051.79 | -2.98% |
| Net Profit | 427,737.28 | 378,867.39 | 12.90% |
| Total inforce Policies count | 1,390,430.00 | 1,286,698.00 | 8.06% |
| Annualized EPS (In Rs.) | 10.42 | 9.23 | 12.90% |
| Net Worth per Share (In Rs.) | 128.01 | 122.80 | 4.24% |
| PE Ratio | 62.84 | - | - |
