Massive profit growth of National, Prime & Gurans Life Insurance Company in Q1; profit hikes by 62.36%, 179.12% & 198.63% respectively
Thu, Nov 16, 2017 12:46 PM on Latest, Financial Analysis, Featured, Stock Market,

Three Life Insurance companies namely, National Life Insurance Company Limited (NLICL), Prime Life Insurance Company Limited (PLICL) and Gurans Life Insurance Company Limited (GLICl) have published their Q1 reports of the current fiscal year 2074/75 today.
National Life Insurance has posted outstanding 62.36% rise in net profit for the first quarter of the current fiscal year 2074/75. It has earned net profit of Rs 8.20 crore in the Q1 of current fiscal year, up from Rs 5.05 crore in the corresponding period last year.
As per the unaudited report for the first quarter published today, NLICL has a paid up capital of Rs1.65 arba with reserve of Rs 34.23 crore. The company’s earnings from premium stands at Rs. 1.31arba in Q1.
Currently, National Life Insurance is seeking approval from Securities Board of Nepal (SEBON) for the issuance of 10:6 (60%) right shares. After the issuance of 60% right share, its paid up capital will reach Rs 2.64 arba and met the capital requirement of Rs 2 arba as per Insurance Board.
The company’s number of policy holders has increased to 8.02 lakh this quarter compared to 3.42 lakh reported in the same period last year.
National Life’s Earning per Share (EPS) stands at Rs 19.83, net worth per share is at Rs.127.59 and P/E ratio at 92.34 times.
Likewise, Prime Life Insurance has paid up capital of Rs. 61.02 crores, while the reserves and surplus stands at Rs.90.12 crore.
Prime Life Insurance is also seeking approval from the SEBON for the issuance of 1:1.60 (160%) right shares. The insurance company’s 7th, 8th, 9th & 10th AGM held on Bhadra 27, 2074 had endorsed to issue 25% bonus share and 160% right share to its shareholders.
After distribution of 25% bonus shares and issuance of 160% right share, its paid up capital will reach Rs 1.58 arba. To meet the capital requirement of Rs 2 arba till the end of Ashad 2075, it should further hike its capital by Rs 42 crore (around 26.58%).
PLICL's net profit has increased to 6.34 crores in the Q1 of FY 074/75, previously, the net profit stood at 2.27 crores—growth of 179.12%.
The company’s number of policy holders has decreased to 5.01 lakh this quarter compared to 6.57 lakh reported in the same period last year. Its earnings from premium stands at Rs.46.41 crore in Q1.
Its EPS stands at 41.58, the P/E stands at 45.45 and the net worth per share of PLICL stands at 260.57.
Similarly, Gurans Life Insurance has paid up capital of Rs. 59.40 crores, while the reserves and surplus stands at Rs.21.80 crore.
Gurans Life Insurance has recently proposed further 7% bonus and 110% right share to increase its paid-up capital to the minimum requirement set by the Insurance Board.
The company will issue 50% right share on its current paid up capital of Rs 59.40 crore. After this right share issue, its paid up capital will increase to Rs 89.10 crore. The company will distribute bonus share worth Rs 6 crore (around 7%) on this capital. Finally, GLICL will float 110% right share on the paid up capital after capitalization of this bonus share, after which its paid-up capital will reach Rs 200.10 crore (i.e. Rs 2 arba and 10 lakhs).
GLICL's net profit has increased to 2.66 crores in the Q1 of FY 074/75, previously, the net profit stood at 89.26 lakhs—growth of 198.63%.
The company’s number of policy holders has increased to 1.80 lakh this quarter compared to 1.28 lakh reported in the same period last year. Its earnings from premium stands at Rs.28.10 crore in Q1.
Its annualized EPS stands at 18.93, the P/E stands at 62.07 and the net worth per share of GLICL stands at 123.87.