Time to review the performance of each non-life insurance companies in the fourth quarter! Find out which company earned how much!

Last week, we analyzed the performance of life insurance companies in the fourth quarter of 2075/76. This week, we will understand how non-life insurance companies performed in the same quarter.

Among the insurance companies, the non-life insurance companies existing in Nepal are:

Besides the above mentioned companies, two unlisted companies are National Insurance Company Limited and Oriental Insurance Company Limited. Similarly, General Insurance Company Nepal Limited, Ajod Insurance Limited and Sanima Insurance Company Limited are newly licensed insurance companies. 

Number of policies:

Number of insurance policies identifies the company’s ability to market its schemes and products. Shikhar Insurance Company (SICL) maintained a lead position with 303,591 insurance policies followed by Neco Insurance Company Limited (NIL) (276,715) and Premier Insurance Company Limited (PIC) (189,156) as of fourth quarter of FY 2075/76. The industry average number of policies is around 117,110. Nine companies have been able to maintain the number of policies above average.

Among the newly listed non-life insurance companies, the number of policies of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 17,811; 31,217 and 49,894 respectively.

Net premium:

Among the mentioned non-life insurance companies, Shikhar Insurance Company (SICL) has the highest net premium amounting to Rs 1.56 arba. It is followed by Neco Insurance Company (NIL) and Sagarmatha Insurance Company (SIC) with a net premium of Rs 1.14 arba and Rs 1.01 arba. The industry average net premium stands at Rs 58.55 crore where seven companies are operating above the average range.

Among the newly listed non-life insurance companies, the net premium of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 7.44 crores, 15.49 crores and 16.46 crores respectively.

Insurance fund:

If we analyze the insurance fund of fourth quarter of 2075/76, Rastriya Beema Company Limited (RBCL) has the highest insurance fund of Rs 1.74 arba. Shikhar Insurance Company (SICL) stands at the second position with a fund of Rs 1.05 arba. NLG Insurance Company (NLG) is seen in the third position with Rs 79.23 crore in insurance fund. The industry average insurance fund stands at Rs 50.57 crore with seven companies above average insurance fund.

Among the newly listed non-life insurance companies, the insurance fund of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 1.15 crores, 2.83 crores and 2.86 crores respectively.

Paid up capital

The governing authorities have asked all the non-insurance companies to meet the paid up capital requirement of at least Rs 1 arba. Neco Insurance Company Limited (NIL) has the highest paid up capital (Rs 1.17 arba), followed by Shikhar Insurance Company (SICL) (Rs 1.05 arba) and Premier Insurance Company (PIC) (Rs 1.04 arba). Ten companies have been able to attain the paid up capital requirement so, bonus shares and right shares can be expected from the remaining companies.

Among the newly listed non-life insurance companies, the paid up capital of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) is 70 arba. They are yet to float IPO to the general public.

Reserves and surplus:

Rastriya Beema Company Limited (RBCL) has the highest reserve of Rs 2.46 arba. It is further followed by Neco Insurance Company (NIL) with a reserve fund of Rs 46.37 crore. Finally, Shikhar Insurance Company Limited (SICL) is seen in the third position with a reserve of Rs 45.71 crore. The industry average reserve and surplus stands at Rs 33.74 crore with only five companies above the average.

Among the newly listed non-life insurance companies, the reserves and surplus of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 3.67 crores, 2.46 crores and 2.57 crores respectively.

Net profit:

Among the non-life insurance companies, the fourth quarter report shows that Rastriya Beema Company Limited (RBCL) has earned the highest net profit of Rs 78.13 crore. It is further followed by Shikhar Insurance Company Limited (SICL) with net profit of Rs 64.22 crore. Neco Insurance Company Limited (NIL) further has a net profit of Rs 34.37 crores in the third place. The industry average net profit stands at Rs 23.01 crore. Seven companies stand above the industry average range of Rs 23.01 crore.

Among the newly listed non-life insurance companies, the net profit of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 2.98 crores, 3.68 crores and 3.62 crores respectively.

EPS

The non-life insurance company that has won the race of  EPS is Rastriya Beema Company Limited (RBCL). The company’s annualized EPS stands at Rs 293.02. It is further followed by Shikhar Insurance Company (SICL) with an EPS of Rs 44.73. Finally, United Insurance Company (Nepal) Limited (UIC) has an EPS of Rs 30.46. Currently, United insurance's 240% right shares is ongoing so post capitalization of its right shares, EPS will decline.

Among the newly listed non-life insurance companies, the annualized EPS of Sanima General Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 4.26, 5.25 and 5.17 respectively.

Net worth:

Analyzing the net worth per share, Rastriya Beema Company Limited (RBCL) has the highest net worth of Rs 1676.77 followed by NLG Insurance Company (NLG) with net worth of Rs 264.54. In the third place, we have Shikhar Insurance Company (SICL) with net worth per share of Rs 250.17. The industry average net worth per share stands at Rs 268.46 with only four companies above the industry average.

Among the newly listed non-life insurance companies, the net worth of Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 108.10 and 108.17 respectively.

PE Ratio:

The PE ratio indicator shows United Insurance Company (Nepal) Limited (UIC) has the least ratio of 9.98 times. It is further followed by Prabhu Insurance Company Limited (PRIN) with a PE Ratio of 13.42 times. Lumbimi General Insurance Company Limited (LGIL) has a P/E ratio of 13.55 times.

In a nutshell:

What do you think about the performance of non-life insurance industry? Would you prefer purchasing the IPOs of newly licensed insurance companies.

Disclaimer: The sources of provided information are quarterly reports, website and spokesperson. Any misinterpretation from the sources might be not adjusted in the analysis.