Citizen Life Insurance Reports 1.60% Rise in Net Profit for Q1; EPS at Rs. 7.63 and Policies Reach 207,261

Fri, Nov 10, 2023 10:29 AM on Financial Analysis, Company Analysis, Latest,

In a recent disclosure of its first-quarter financial results for the fiscal year 2080/2081, Citizen Life Insurance Company Limited (CLI) has demonstrated decent performance, showcasing a 1.60% rise in net profit compared to the corresponding quarter of the previous year. The company's net profit increased from Rs. 7.03 crores to Rs. 7.14 crores in the reported quarter.

As of the unaudited report, Citizen Life boasts a robust financial position with a paid-up capital of Rs. 3.75 Arba and a share premium of Rs. 1.55 Arba. Additionally, the company holds Rs. 65.14 crore in retained earnings, Rs. 70.43 crore in other equity, and Rs. 14.5 crore in the contingent fund.

The net premium of the company experienced a healthy uptick, registering a 3.46% increase to Rs. 1.42 Arba in FY 2080/81 compared to the corresponding quarter of the previous year. Furthermore, Citizen Life generated Rs. 26.64 crores from income derived from investments, loans, and other financial headings.

However, the company also reported an 11.10% increase in net claims, reaching Rs. 1.28 Arba in the first quarter of the fiscal year 2080/2081. The total number of policies held by the company stood at 207,261 as of the end of Q1.

Key financial indicators include an annualized earnings per share (EPS) of Rs. 7.63 and a net worth per share of Rs. 181.41. The company's stock traded at a P/E multiple of 52.33 times.

Citizen Life recently issued 90,00,000 unit IPO shares at a premium price of Rs. 244 per share (Rs. 100 face value + Rs. 144 premium price) to the general public. The IPO subscription window was open from the 15th to the 19th of Bhadra, 2080.

Click here for the Q1 report

Major Highlights:

Particulars (In Rs '000) Citizen Life Insurance Company
Q1 2080/81 Q1 2079/80 Difference
Paid Up Capital 3,750,000.00 2,625,000.00 42.86%
Share Premium 1,552,037.44 13,037.44 -
Retained Earnings 651,465.97 587,843.94 10.82%
Other Equity 704,358.47 717,381.28 -1.82%
Contingent Fund 145,022.92 137,874.38 5.18%
Net Premium 1,422,149.93 1,374,626.21 3.46%
Income from Investment, Loan and others 266,477.98 233,254.03 14.24%
Claim Payment (Net) 1,288,882.48 1,160,079.34 11.10%
Impairment Losses 0.00 1,277.64 -
Commission Expenses 158,782.68 202,982.43 -21.78%
Net Profit 71,485.43 70,361.00 1.60%
No of Policies 207,261.00 782,191.00 -73.50%
Annualized EPS (In Rs.) 7.63 10.72 -28.88%
Net Worth per Share (In Rs.) 181.41 155.47 16.68%
PE Ratio 42.33 - -