Reliable Nepal Life Insurance Posts 4.97% Surge in Net Profit to Rs. 23.09 Crores in Q2; EPS at Rs. 11.55
Tue, Feb 6, 2024 12:06 PM on Latest, Financial Analysis, Company Analysis,
Reliable Nepal Life Insurance Limited (RNLI) has reported a notable 4.97% surge in its net profit, reaching Rs. 23.09 crore in the current quarter compared to Rs. 22 crore in the corresponding quarter last year.
RNLI boasts with a paid-up capital of Rs. 4 Arba and a share premium of Rs. 1.75 Arba. Additionally, the company has demonstrated financial prudence with Rs. 1.23 Arba in retained earnings, Rs. 5.56 Crores in other equity, and Rs. 14.37 Crores in catastrophe reserves. The company maintains a life insurance fund of Rs. 8.54 Arba.
In terms of operational performance, RNLI has exhibited resilience, witnessing a 1.74% increase in net premiums, totaling Rs. 1.75 Arba in Q2 FY 2080/81 compared to the previous year. The company showcased its financial acumen by generating a commendable Rs. 63.90 Crores from income derived from investments, loans, and other financial activities.
However, it's worth noting that the quarter also witnessed a 21.85% increase in net claims, amounting to Rs. 1.63 Arba.
Key financial indicators highlight RNLI's strong performance, with an annualized earnings per share (EPS) of Rs. 11.55, net worth per share of Rs. 179.71, and a P/E ratio of 49.01 times.
It's essential to mention that in line with industry practices, the final profit in the life insurance sector may deviate as per the actuarial valuation.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Reliable Nepal Life Insurance | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 4,000,000.00 | 2,800,000.00* | 42.86% |
| Share Premium | 1,750,392.04 | 0.00* | - |
| Catastrophe Reserves | 143,707.55 | 109,590.62* | 31.13% |
| Retained Earnings | 1,238,582.12 | 937,141.95* | 32.17% |
| Other Equity | 55,688.12 | 47,632.14* | 16.91% |
| Life Insurance Fund | 8,537,960.12 | 6,494,132.66* | 31.47% |
| Net Premium | 1,752,617.63 | 1,722,577.14 | 1.74% |
| Interest Income on Loan to Policyholders | 15,626.73 | 2,462.75 | 534.52% |
| Income from Investment, Loan and others | 639,068.59 | 411,916.55 | 55.15% |
| Claim Payment (Net) | 1,638,061.95 | 1,344,302.67 | 21.85% |
| Commission Expenses | 218,639.18 | 248,076.40 | -11.87% |
| Net Profit | 230,979.55 | 220,046.80 | 4.97% |
| Total inforce Policies count | 3,299,632.00 | 3,676,041.00 | -10.24% |
| Annualized EPS (In Rs.) | 11.55 | 15.72 | -26.52% |
| Net Worth per Share (In Rs.) | 179.71 | 139.08 | 29.21% |
| PE Ratio | 49.01 | - | - |
