All 15 non-life insurance companies listed in Nepal Stock Exchange (NEPSE) have published their financial statements of the first quarter of the FY 2074/75. The performance of all the general insurance companies seems to be quite satisfactory but due to the run for capital increment to Rs 1 arba as directed by the Insurance Board of Nepal for all non-life insurance till the end of Ashad 2075, their earnings with respect to the capital increment may fall, as they may not be able to hike their businesses.
The table below breaks down major fundamental parameters every investor should analyze before they make decision of investing in insurance companies:
(* Amount in Rs '000)
Summarizations:
Notes:
- Capital, Reserve, Insurance Fund (including contingent fun), Net Profit, Net Premium, Outstanding Claim are in Rs. Thousands.
- Annualized Earning per Share (EPS), Net worth per share and Last Traded Price (LTP) is in Rs
- Annualized EPS = (Net profit divided by No. of shares) times 4
- Net Worth = Sum of Paid up capital, Reserve Fund, Insurance Fund and Contingent Fund divided by No of shares
- P/E Ratio = LTP divided by Annualized EPS (LTP as of Nov 23, 2017)
Recommendation: Better to save screenshot of above table for further use.
