Reliable Nepal Life Insurance Achieves Impressive Q3 Results: Net Profit Surges by 6.49%, Net Premiums Reach Rs. 2.73 Arba, Commission Expenses Decline
Tue, May 7, 2024 12:02 PM on Latest, Financial Analysis,
Reliable Nepal Life Insurance Limited (RNLI) has unveiled its impressive financial performance for the third quarter of the fiscal year 2080/2081, showcasing a notable surge of 6.49% in net profit. The company's net profit surged to Rs. 30.42 crores, marking a substantial increase from Rs. 28.57 crores recorded in the corresponding quarter of the previous fiscal year.
RNLI boasts a paid-up capital of Rs. 4.64 Arba alongside a significant share premium of Rs. 1.75 Arba. Additionally, the company maintains substantial reserves, including Rs. 66.46 Crores in retained earnings, Rs. 1.68 Crores in other equity, and Rs. 15.46 Crores in catastrophe reserves.
During the period under review, Reliable Nepal Life witnessed an incline of 3.42% in net premiums, reaching Rs. 2.73 Arba in Q3 FY 2080/81 compared to the preceding year. Demonstrating financial acumen, the company generated Rs. 97.41 Crores from income derived from investments, loans, and other financial activities.
However, the quarter also witnessed a noteworthy 18.57% increase in net claims, totaling Rs. 2.58 Arba. On a positive note, commission expenses declined by 10.28%, reaching Rs. 32.78 Crores.
Key financial metrics further underscore RNLI's performance, with an annualized earnings per share (EPS) of Rs. 8.74. Moreover, the net worth per share stands at Rs. 155.74. while the Price-to-Earnings (P/E) ratio stood at 49.70 times.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Reliable Nepal Life Insurance | ||
|---|---|---|---|
| Q3 2080/81 | Q3 2079/80 | Difference | |
| Share Capital | 4,640,000.00 | 2,800,000.00* | 65.71% |
| Share Premium | 1,750,392.04 | 0.00 | - |
| Catastrophe Reserves | 154,638.98 | 120,609.59* | 28.21% |
| Retained Earnings | 664,685.65 | 1,033,010.32* | -35.66% |
| Other Equity | 16,849.47 | 62,634.31* | -73.10% |
| Insurance Fund | 9,220,963.04 | 7,402,881.13* | 24.56% |
| Investment | 15,370,392.59 | 10,426,873.61* | 47.41% |
| Net Premium | 2,735,758.15 | 2,645,327.31 | 3.42% |
| Income from Investment, Loan and others | 974,177.27 | 653,637.27 | 49.04% |
| Claim Payment (Net) | 2,588,756.04 | 2,183,365.66 | 18.57% |
| Commission Expenses | 327,834.95 | 365,394.05 | -10.28% |
| Net Profit | 304,293.92 | 285,736.24 | 6.49% |
| No of Policies | 3,151,800.00 | 3,514,902.00 | -10.33% |
| EPS (In Rs.) | 8.74 | 13.61 | -35.74% |
| Net Worth per Share (In Rs.) | 155.74 | 143.44 | 8.58% |
| PE Ratio | 49.70 | ||
| Solvency Ratio | 1.84 | - | - |
