Recently IPO-floated ILI Reveals Q4 Report with Impressive Increase in Net Profits; Net Premium Accumulation Rise Steady
Tue, Aug 15, 2023 12:12 PM on Financial Analysis, Latest,
IME Life Insurance Company Limited (ILI) has published its fourth-quarter report for the recently concluded financial year 2079-80 with a considerable increase of 87.18 percent in its Net profit. As of FY 2079-80, the company has made Rs. 24.08 crores as opposed to earning only Rs. 12.86 crores until the corresponding quarter of the previous FY 2078-79.
Despite a significant improvement in the Net profit of the company, the Earnings per Share (EPS) of the company has declined as well to stand at Rs. 6.02, alongside a Net worth per Share of Rs. 171.05, as of FY 2079-80’s end.
The Net premium accumulated by the life insurance company totals Rs. 4.01 Arba as it has increased steadily by 16.48 percent until the last quarter of the recently wrapped up financial year 2079-80.
The number of policies sold by the company, however, has increased by a significant 67.92 percent, totaling 4.25 lakhs until Q4 of FY 2079-80.
ILI maintains Rs. 4 Arba in paid-up capital and has Rs. 2.71 crores in the form of Reserve and Surplus as of FY 2079-80’s end.
Recently, the company floated an IPO for the issued capital of the life insurance company to reach Rs. 4 Arba of which 30% i.e. 1,20,00,000 unit shares are for the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e., 12,00,000 unit shares were issued to the Nepalese citizens working abroad, whereas 5% i.e., 600,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 600,000 units have been set aside for the mutual funds. The remaining 96,00,000 units were for the general public.
The shares were issued for Rs. 236.91 per share (Rs 100 face value + Rs 136.91 premium price) to the general public and for the employees of the company at a par value of Rs. 100.
Major Financial Highlights:
| Particulars (In Rs '000) | IME Life Insurance Company Limited | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 4,000,000.00 | 1,400,000.00 | 185.71% |
| Reserve and Surplus | 2,713,873.00 | 776,820.00 | 249.36% |
| Life Insurance Fund | 6,751,594.00 | 4,713,183.00 | 43.25% |
| Contingent Fund | 128,067.00 | 86,313.00 | 48.38% |
| Net Premium | 4,016,513.00 | 3,448,242.00 | 16.48% |
| Re-insurance Income | - | - | - |
| Claim Payment (Net) | 1,067,696.00 | 877,064.00 | 21.74% |
| Agent Commission | 464,207.00 | 551,609.00 | -15.84% |
| Net Profit | 240,813.00 | 128,656.00 | 87.18% |
| No of Policies (No.s) | 425754.00 | 253539.00 | 67.92% |
| Earnings per Ratio (EPS) ratio (In Rs.) | 6.02 | 9.19 | -34.49% |
| Net Worth per Share (In Rs.) | 171.05 | 161.65 | 5.81% |
| PE Ratio (times) | - | - | - |
| Qtr End Market Price (In Rs.) | 745.10 | - | - |
