Prabhu Insurance Company Reports 10.53% Increase in Net Profit for Q2 2081/82 Despite Decline in Net Premium

Wed, Feb 12, 2025 9:09 AM on Latest, Financial Analysis, Company Analysis,

Prabhu Insurance Company Limited (PRIN) has posted a net profit of Rs. 12.00 crores for the second quarter of the fiscal year 2081/82, marking a 10.53% increase from Rs. 10.86 crores in the same period of the previous year. This positive growth comes despite a decline in the company’s net premium, which fell by 34.18% to Rs. 28.26 crores, compared to Rs. 42.93 crores in Q2 2080/81.

The company’s total investment saw a modest increase of 4.45%, reaching Rs. 2.70 Arba, up from Rs. 2.59 Arba last year. A notable development in the company’s financials was a significant rise in the insurance fund, which grew by 50.50% to Rs. 2.69 Arba, compared to Rs. 1.78 Arba in the corresponding quarter of the previous fiscal year. The special reserves and catastrophe reserves also saw increases of 4.63% and 5.54%, respectively, with special reserves standing at Rs. 1.35 Arba and catastrophe reserves at Rs. 11.44 crores.

Prabhu Insurance’s income from investment, loans, and other sources grew by 14.55%, reaching Rs. 4.15 crores, compared to Rs. 3.62 crores last year. Meanwhile, claim payments (net) decreased by 39.61%, totaling Rs. 9.84 crores, compared to Rs. 16.30 crores in the previous year. Commission expenses also decreased by 18.72%, amounting to Rs. 1.83 crores.

The company’s earnings per share (EPS) for the quarter rose by 10.53% to Rs. 16.66, while the net worth per share increased by 5.37%, reaching Rs. 234.14. Additionally, Prabhu Insurance maintains a strong solvency ratio of 1.94. The company’s price-to-earnings (P/E) ratio was recorded at 56.80.

Report:

Major Highlights:

*Figure is of Immediate Fiscal Year Ending

Particulars (In Rs '000) Prabhu Insurance Company
Q2 2081/82 Q2 2080/81 Difference
Share Capital 1,441,488.07 1,441,488.07* 0.00%
Special Reserves 1,355,877.91 1,295,852.98* 4.63%
Catastrophe Reserves 114,424.68 108,422.18* 5.54%
Retained Earnings 309,218.40 256,527.92* 20.54%
Other Equity 154,051.11 100,617.19* 53.11%
Insurance Fund 2,693,835.69 1,789,900.88* 50.50%
Investment 2,706,189.22 2,590,856.74* 4.45%
Net Premium 282,560.59 429,289.80 -34.18%
Income from Investment, Loan and others 41,521.73 36,248.47 14.55%
Claim Payment (Net) 98,429.08 162,978.84 -39.61%
Commission Expenses 18,281.97 22,493.72 -18.72%
Net Profit 120,049.85 108,612.12 10.53%
No of Policies 52,385.00 59,263.00 -11.61%
EPS (In Rs.) 16.66 15.07 10.53%
Net Worth per Share (In Rs.) 234.14 222.19 5.37%
PE Ratio 56.80    
Solvency Ratio 1.94 - -