Nepal Life Insurance earns Rs 40.96 crore in Q3; reserve at a massive Rs 4.73 arba after FPO

Nepal Life Insurance Co. Ltd. (NLIC) has earned Rs 40.96 crore in net profit until the end of third quarter of the ongoing fiscal year 2073/74. As per the unaudited financial statement of the life insurance company published today, it has posted a healthy 72% increase in its net profit. It had earned Rs 23.80 crore in the same period last year. Its net premium earnings has increased by 25.36% in this period. It has earned Rs 7.81 arba in Q3 this year, whereas the figure stood at Rs 6.23 arba last year. It has also earned Rs 93.91 lakh in reinsurance commission this year. As of the end of Q3 this year, its investments stand at Rs 31.61 arba, up from Rs 22 arba last year. NLIC has paid claims worth Rs 1.94 arba this year, while it has pending claims of Rs 58 crore. Likewise, its number of policies has reached 10.24 lakhs. It added 15,872 clients in this period. Its paid up capital after its recently concluded FPO and 25% bonus share stands at Rs 3.09 arba with a reserve of Rs 4.73 arba and insurance fund of Rs 37.18 arba. Its reserve grew by Rs 4.1 arba after it issued 30.96 lakh units FPO shares at Rs 1,425 per share. Last year, its reserve was at only Rs 72.87 crore. Accounting for this, its net worth per share has now increased to Rs 260.14. Its annualized EPS now stands at Rs 17.64 and P/E ratio at 141 times. However, this earning will likely increase after the actuarial valuation of the insurance fund at the end of fiscal year.