Slow Business Growth, Higher Claim Payment and Massive Provision for Investment Losses results Negative Profit of Nepal Life Insurance in Q4
Sun, Aug 14, 2022 6:13 AM on Financial Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has reported a net loss in Q4 of FY 2078/79. The company reported a net loss of Rs. 35.27 crores compared to Rs. 53.59 crores net profit of the corresponding quarter of the previous year.
The company is in loss mainly due to huge provision for Investment Losses of Rs 77.80 crores in Q4.
The paid-up capital of the company stands at Rs. 8.20 Arba and reserve and surplus stood at Rs. 28.83 Crores. Its life insurance fund increased by 21.51% to Rs. 1.36 Kharba and its contingent fund stood at Rs. 72.02 crores.
The net premium increased by 9.44% to Rs. 34.98 Arba and income from Investment, Loan increased by 15.09% to Rs 8.95 arba.
The agent commission slightly decreased by 0.74% in this quarter. The company's net claim payment increased by 61.35% to Rs 14.16 arba till Q4. The number of policies stood at 1,421,4897.
The EPS stood at negative Rs. 4.30 and net worth per share stood at Rs. 112.29.
Major Highlights:
| Particulars (In Rs '000") | Nepal Life Insurance | ||
| Q4 2078/79 | Q4 2077/78 | Difference | |
| Paid Up Capital | 8,207,967 | 7,199,971 | 14.00% |
| Reserve and Surplus | 288,370 | 1,016,346 | -71.63% |
| Life Insurance Fund | 136,710,632 | 112,512,934 | 21.51% |
| Contingent Fund | 720,282.45 | 588,906.86 | 0.00% |
| Long Term Investment and Loan | 78,632,924 | 48,381,733 | 62.53% |
| Loan Against Insurance Policy | 24,769,612 | 19,546,343 | 26.72% |
| Net Premium | 34,988,279 | 31,969,389 | 9.44% |
| Re-Insurance Commission Income | 91,682 | 26,275 | 248.94% |
| Income from Investment, Loan and others | 8,949,302 | 7,776,004 | 15.09% |
| Claim Payment (Net) | 14,167,039 | 8,780,481 | 61.35% |
| Agent Commission | 3,529,913 | 3,556,309 | -0.74% |
| Provision for Pending Claims | 1,715,260 | 2,555,190 | -32.87% |
| Provision for Un-Expired Risk | 313,321 | 281,129 | 11.45% |
| Transferred to Life Insurance Fund | 25,962,843 | 25,207,917 | 2.99% |
| Gross Profit | 2,747 | 34,803 | 0.00% |
| Provision for losses (Investment) | 778,045 | - | |
| Net Profit/(Loss) | -352,738 | 535,943 | - |
| No of Policies | 1,421,897 | 1,381,433 | 2.93% |
| EPS (In Rs.) | -4.30 | 7.44 | - |
| Net Worth per Share (In Rs.) | 112.29 | 122.30 | -8.18% |
| Qtr End PE Ratio | - | - | - |
| Qtr End Market Price | 747.00 | - | - |
