NLIC Q4: Steady Improvement in Net Premium Leads to Better Profitability for Life Insurance Company
Sun, Aug 13, 2023 12:05 PM on Financial Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has published its fourth-quarter report for the recently concluded financial year 2079-80 with a significant improvement in Net Profit, totaling Rs. 67.44 crores. Until Q4 of the previous fiscal year 2078-79, the company had lost Rs. 35.27 crores.
The life insurance company has collected a Net Premium of Rs. 36.62 Arba as of the last quarter of FY 2079-80 which in comparison to the Net Premium collected by the company until the corresponding quarter of FY 2078-79 is 4.69 percent more.
The Net Claim Payment for the company had increased by 8.95 percent, amounting to Rs. 15.43 Arba as of FY 2079-80’s end.
Despite an improvement in Net Profits, the Earnings per Share (EPS) of the company has decreased to stand at Rs. 8.22, alongside a steadily increased Net worth per Share of Rs. 118.84.
As of FY 2079-80, as many as 1,105,365 insurance policies were sold by the company.
NLIC maintains Rs. 8.20 Arba in paid-up capital, Rs. 64.97 crores in Reserve and Surplus, Rs. 1.63 Kharba in Life Insurance Fund, and Rs. 89.66 crores in Contingent/Catastrophic Fund.
Major Financial Highlights:
| Particulars (In Rs '000) | Nepal Life Insurance | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 8,207,966.55 | 8,207,966.55 | 0.00% |
| Reserve and Surplus | 649,722.15 | 288,370.44 | 125.31% |
| Life Insurance Fund | 163,826,313.10 | 136,790,632.10 | 19.76% |
| Contingent Fund | 896,691.18 | 720,282.45 | 24.49% |
| Net Premium | 36,628,062.32 | 34,988,271.14 | 4.69% |
| Re-insurance Income | 105,520.69 | 91,861.85 | 14.87% |
| Claim Payment (Net) | 15,434,392.77 | 14,167,038.74 | 8.95% |
| Provision for losses | - | 778,044.81 | - |
| Agent Commission | 3,107,012.08 | 3,529,913.27 | -11.98% |
| Net Profit | 674,435.83 | -352,738.16 | - |
| No of Policies (No.s) | 1,105,365 | 1,421,897 | -22.26% |
| Earnings per Ratio (EPS) ratio (In Rs.) | 8.22 | 13.95 | -41.08% |
| Net Worth per Share (In Rs.) | 118.84 | 112.29 | 5.83% |
| Qtr end PE Ratio (times) | 90.55 | - | - |
| PE Ratio (times) | 90.51 | - | - |
| Qtr End Market Price | 744 | - | - |
