Nepal Life Insurance Earns Rs. 65.2 Crores Net Profit in Q3; Net Worth per Share and EPS Decline
Sun, May 11, 2025 9:49 AM on Financial Analysis, Company Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has posted a net profit of Rs. 65.2 crores in the third quarter of fiscal year 2081/82, reflecting an 8.64% growth compared to Rs. 60 crores in the corresponding quarter of the previous year. Despite the profit increase, the company's annualized earnings per share (EPS) fell slightly to Rs. 9.63, down from Rs. 9.75.
The company’s paid-up capital reached Rs. 9.02 Arba, marking a 10% increase from the previous year’s Rs. 8.20 Arba. Similarly, its life insurance fund expanded by 15.41% to Rs. 22.70 Arba, indicating steady business growth. Investments rose to Rs. 18.45 Arba, up 12.45% from last year.
Net premium income rose by 11.61%, amounting to Rs. 32.50 Arba. Additionally, the company earned Rs. 12.12 Arba from investments, loans, and other income sources, which represents a 10.91% increase.
However, retained earnings declined sharply by 38.44%, falling to Rs. 11.83 crores from Rs. 19.23 crores. Net worth per share also dropped by 8.28% to Rs. 135.81, down from Rs. 148.07.
On the expenses side, net claim payments rose to Rs. 41.09 Arba, up by 13.83%. Commission expenses also increased by 10%, totaling Rs. 2.41 Arba this quarter.
Nepal Life Insurance is currently trading at a price-to-earnings (PE) ratio of 79.57.
Report:
Major Highlights:
* Figure is of the Immediate Fiscal Year Ending
| Particulars (In Rs '000) | Nepal Life Insurance Company | ||
|---|---|---|---|
| Q3 2081/82 | Q3 2080/81 | Difference | |
| Paid Up Capital | 9,028,763.21 | 8,207,966.55* | 10.00% |
| Share Premium | 0.00 | 0.00 | - |
| Catastrophe Reserves | 1,323,196.60 | 1,263,777.60* | 4.70% |
| Retained Earnings | 1,183,891.53 | 1,923,276.30* | -38.44% |
| Other Equity | 725,770.11 | 758,278.15* | -4.29% |
| Life Insurance Fund | 227,059,458.74 | 196,734,787.83* | 15.41% |
| Investments | 184,587,505.91 | 164,157,721.59* | 12.45% |
| Net Premium | 32,507,209.66 | 29,124,953.50 | 11.61% |
| Income from Investment, Loan and others | 12,123,817.48 | 10,931,696.39 | 10.91% |
| Claim Payment (Net) | 41,090,770.71 | 36,097,586.27 | 13.83% |
| Commission Expenses | 2,411,615.99 | 2,192,457.99 | 10.00% |
| Net Profit | 652,223.76 | 600,367.55 | 8.64% |
| Annualized EPS (In Rs.) | 9.63 | 9.75 | -1.24% |
| Net Worth per Share (In Rs.) | 135.81 | 148.07 | -8.28% |
| PE Ratio | 79.57 | - | - |
