Net Premium of Premier Insurance Decreased by 8.01% in Q2; PIC to Merge With Siddhartha Insurance at 1:1 Swap Ratio
Wed, Feb 8, 2023 12:37 PM on Latest, Financial Analysis, Stock Market,
Premier Insurance Company Limited (PIC) has earned a net profit of Rs 15.61 crore till the Q2 of FY 2079/80. The profit of the company has declined by 0.34% in this quarter compared to the corresponding quarter of the last fiscal year.
The company's provision for possible losses has increased by 129.97% as compared to the corresponding quarter of the previous year which led to a decline in Net Profit in this quarter.
As per the unaudited report published today, the net premium has decreased by 8.01% to Rs 42.40 crores from Rs 46.09 crores in the corresponding quarter of the last fiscal year.
The insurance company has a paid-up capital of Rs 1.40 Arba with a reserve of Rs 30.08 crore in Q2 of 2079/80.
Likewise, the company’s insurance fund has increased to Rs 1.09 Arba from Rs 91.67 crore in the corresponding quarter of the last fiscal year.
The insurance company has issued a total of 75,065 insurance policies.
As per the second-quarter report, the annualized EPS of the insurance company stands at Rs 22.27with a net worth per share of Rs 126.30. The quarter-end Price to Earnings Ratio stands at 29.50 times.
PIC also endorsed 14.25% bonus shares and 0.75% cash dividend from the profit of the previous fiscal year and also endorsed the decision to merge with Siddhartha Insurance so as to form Siddhartha Premier Insurance in share swap ratio of 1:1.
Major Highlights:
| Particulars (In Rs '000) | Premier Insurance | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,402,630.00 | 1,074,560.00 | 30.53% |
| Reserve and Surplus | 300,814.00 | 466,536.00 | -35.52% |
| Insurance Fund | 1,093,024.00 | 916,745.00 | 19.23% |
| Contingent Fund | 68,089.00 | 50,557.00 | 34.68% |
| Net Premium | 424,063.00 | 460,985.00 | -8.01% |
| Re-Insurance Income | 113,144.00 | 129,905.00 | -12.90% |
| Income from Investment, Loan and others | 58,990.00 | 41,690.00 | 41.50% |
| Claim Payment (Net) | 224,575.00 | 188,362.00 | 19.23% |
| Provision for Losses | 24,966.00 | 10,856.00 | 129.97% |
| Agent Commission | 13,689.00 | 14,211.00 | -3.67% |
| Net Profit | 156,185.00 | 155,659.00 | 0.34% |
| No of Policies | 75,065.00 | 84,142.00 | -10.79% |
| EPS (In Rs.) | 22.27 | 28.97 | -23.13% |
| Net Worth per Share (In Rs.) | 126.30 | 148.12 | -14.73% |
| PE Ratio | 29.50 | - | |
