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,
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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.
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 | - | - |