What Caused the Net Profit of Nepal Life Insurance to Rise Significantly by 2398.20% in Q1?
Tue, Nov 15, 2022 11:24 AM on Latest, Financial Analysis, Stock Market,
Nepal Life Insurance Company Limited (NLIC) has reported an outstanding incline in Net profit in Q1 of FY 2079/80. The company reported a net profit of Rs. 17.57 crores compared to Rs. 70.33 Lakhs net profit of the corresponding quarter of the previous year. The net profit for this quarter has been increased by 2398.20%.
The net premium increased by 1.24% to Rs. 9.39 Arba and income from Investment, Loan increased by 31.04% to Rs 2.89 arba.
As can been seen from the reports, the company has transferred an amount equal to Rs. 7.935 Arba in the life insurance fund. The agent commission has also decreased by 16.52%, indicating the company had lower operating cost which has impacted the net profit of the company.
The company also generated huge profit due to decline in provision for possible Losses by 90.51% in this quarter.
The paid-up capital of the company stands at Rs. 8.20 Arba and reserve and surplus stood at Rs. 1.99 Arba, an incline of 129.04%. Its life insurance fund increased by 19.64% to Rs. 1.42 Kharba and its contingent fund stood at Rs. 83.10 crores.
The annualized EPS stood at Rs. 8.56 and net worth per share stood at Rs. 134.39.
Major Highlights:
| Particulars (In Rs '000) | Nepal Life Insurance | ||
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 8,207,966.55 | 7,199,970.66 | 14.00% |
| Reserve and Surplus | 1,991,832.03 | 869,648.96 | 129.04% |
| Life Insurance Fund | 142,086,272.21 | 118,759,446.56 | 19.64% |
| Contingent Fund | 831,004.61 | 631,374.97 | 31.62% |
| Net Premium | 9,939,607.36 | 9,747,192.66 | 1.97% |
| Re-Insurance Comission Income | 3,212.40 | 6,629.01 | -51.54% |
| Loan Against Policy | 26,588,271.192 | 20,573,221.648 | 29.24% |
| Income from Investment, Loan and others | 2,896,765.68 | 2,204,556.42 | 31.40% |
| Provision for Possible losses | 17,172.41 | 180,889.08 | -90.51% |
| Claim Payment (Net) | 4,356,123.86 | 4,261,235.13 | 2.23% |
| Agent Commission | 831,552.79 | 996,104.60 | -16.52% |
| Transferred to Life Insurance Fund | 7,935,416.84 | 7,080,698.15 | 12.07% |
| Net Profit | 175,700.88 | 7,033.11 | 2398.20% |
| No of Policies | 1,425.28 | 1,393.26 | 2.30% |
| EPS (In Rs.) | 8.56 | 0.39 | 2091.40% |
| Net Worth per Share (In Rs.) | 134.39 | 120.85 | 11.21% |
| PE Ratio | 67.97 | - | - |
