Nepal Life Insurance Posts 30.81% Profit Surge in Q4 FY 2080/81; Net Premiums and Investment Income Drive Growth
Tue, Aug 13, 2024 8:11 AM on Financial Analysis, Company Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has reported a magnificent 30.81% increase in net profit for the fourth quarter of FY 2080/81, reaching Rs. 51.39 crore, up from Rs. 39.29 crore in the same quarter of the previous fiscal year.
NLIC maintains a strong financial position with a paid-up capital of Rs. 8.2 Arba. The company’s financial reserves include Rs. 52.84 crore in retained earnings, Rs. 76.15 crore in other equity, and Rs. 1.09 Arba in catastrophe reserves. Additionally, NLIC manages a substantial life insurance fund totaling Rs. 1.98 Kharba.
The quarter also saw a 9.86% growth in net premiums, bringing the total to Rs. 40.11 Arba. NLIC demonstrated its financial acumen by generating Rs. 15.20 Arba from income derived from investments, loans, and other financial activities.
Despite these gains, the company reported a 12.65% increase in net claims, amounting to Rs. 49.46 Arba. Key financial metrics include an annualized earnings per share (EPS) of Rs. 6.26, a net worth per share of Rs. 129.11, and a price-to-earnings (P/E) ratio of 98.88 times, reflecting NLIC's continued strong performance.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Life Insurance Company | ||
|---|---|---|---|
| Q4 2080/81 | Q4 2079/80 | Difference | |
| Share Capital | 8,207,966.55 | 8,207,966.55* | 0.00% |
| Share Premium | 0.00 | 43,839.63* | - |
| Catastrophe Reserves | 1,099,029.64 | 1,754,494.11* | -37.36% |
| Retained Earnings | 528,408.08 | 1,754,494.11* | -69.88% |
| Other Equity | 761,597.70 | 740,562.07* | 2.84% |
| Insurance Fund | 198,337,488.18 | 163,391,287.38* | 21.39% |
| Investment | 164,157,721.59 | 138,756,809.41* | 18.31% |
| Net Premium | 40,110,206.07 | 36,510,428.12 | 9.86% |
| Income from Investment, Loan and others | 15,203,064.89 | 12,779,338.12 | 18.97% |
| Claim Payment (Net) | 49,462,792.19 | 43,908,657.39 | 12.65% |
| Commission Expenses | 3,181,620.65 | 3,109,076.70 | 2.33% |
| Net Profit | 513,982.80 | 392,915.65 | 30.81% |
| No of Policies | 1,467,128.00 | 1,159,583.00 | 26.52% |
| EPS (In Rs.) | 6.26 | 4.79 | 30.81% |
| Net Worth per Share (In Rs.) | 129.11 | 152.31 | -15.23% |
| PE Ratio | 98.88 | ||
| Solvency Ratio | 3.22 | - | - |
