Comparative Analysis of Life Insurance Companies in Q4 FY 2081/82: Profits, Capital, and Ratios Unveiled

The 13 life insurance companies have released their fourth-quarter financial statements for FY 2081/82, shedding light on their overall performance throughout the year. These reports provide insights into profitability, capital base, and the pace of business growth within the sector. It is worth noting that Rastriya Jeewan Beema Company (RJBCL) is among these insurers but is not listed on the stock exchange. This overview highlights key trends in earnings, capital adequacy, and other critical financial metrics shaping the industry’s outlook.

Net Profit:

In Q4 FY 2081/82, Nepal Life Insurance Company Limited (NLIC) led with a net profit of Rs. 60.33 Crores, marking a 17.37% increase over the same period last year. IME Life Insurance Company (ILI) followed with a net profit of Rs. 58.33 Crores, though this represents a 4.65% decrease from the previous year. 

Reliable Nepal Life Insurance Limited (RNLI) recorded the highest growth, a staggering 47.26% rise, while Life Insurance Corporation Nepal Limited (LICN) saw the largest decline at 61.92%.

Paid-Up Capital:

Himalayan Life Insurance Limited (HLI) holds the highest paid-up capital at Rs. 9.14 Arba, followed by Nepal Life Insurance Company (NLIC) at Rs. 9.03 Arba, and Life Insurance Corporation Nepal (LICN) with Rs. 5.50 Arba. Rastriya Jeewan Beema Company (RJBCL) has the lowest paid-up capital at Rs. 18 Crores.

Reserve and Surplus:

The combined reserve and surplus of all life insurance companies totaled Rs. 20.59 Arba, with the industry average standing at Rs. 1.58 Arba. Life Insurance Corporation Nepal (LICN) led with Rs. 4.31 Arba, followed by Nepal Life Insurance (NLIC) at Rs. 3.32 Arba and Citizens Life Insurance (CLI) with Rs. 1.98 Arba.

Life Insurance Funds:

Collectively, life insurance companies gathered Rs. 7.82 Kharba in life insurance funds, with five companies surpassing this average.

Nepal Life Insurance Company (NLIC) led at Rs. 2.35 Kharba, followed by Life Insurance Corporation Nepal (LICN) at Rs. 1.33 Kharba. Sun Nepal Life Insurance (SNLI) recorded the lowest life insurance fund collection at Rs. 10.11 Arba.

Investments:

Nepal Life Insurance (NLIC) topped the list in investments with Rs. 1.89 Kharba, followed by Life Insurance Corporation Nepal Limited (LICN) with Rs. 1.17 Kharba.

Meanwhile, Sun Nepal Life Insurance (SNLI) had the smallest investment portfolio at Rs. 14.21 Arba.

Net Premium:

Net premium, reflecting the core company's earnings, saw Nepal Life Insurance (NLIC) leading at Rs. 47.67 Arba, closely followed by National Life Insurance Company (NLICL) at Rs. 21.47 Arba.

Income from Investments, Loans & Others:

Nepal Life Insurance Company Limited (NLIC) has reported the highest income from investments, loans & others of Rs. 16.31 Arba. National Life Insurance Company Limited (NLICL) has reported a net premium of Rs. 5.84 Arba, making it the second-highest.

Sun Nepal Life Insurance (SNLI) recorded the lowest earnings from investments, loans & others collection at Rs. 90 Crores.

Net Claims Paid:

Nepal Life Insurance Company Limited (NLIC) holds the highest amount of net claim payment in this quarter, which amounts to Rs. 57.32 Arba. This is followed by Life Insurance Corporation Nepal Limited (LICN), which has a net claim payment of Rs. 26.84 Arba.

Total Inforce Policy Count:

Among the life insurance companies, RNLI is leading the chart with 24.94 lakh policies. Whereas, PMLI has the lowest total in-force policy count of 2.75 lakh.  

Major Indicators:

Earnings Per Share (EPS):

Asian Life Insurance Company Limited (ALICL) posted the highest EPS at Rs. 12.04, followed by Rastriya Jeewan Beema Company (RJBCL) at Rs. 11.77 and IME Life Insurance Company (ILI) at Rs. 11.67.

The industry average EPS was Rs. 8.73, with five companies above this benchmark. Life Insurance Corporation Nepal Limited (LICN) had the lowest EPS at Rs. 5.74. 

Net Worth Per Share:

Rastriya Jeewan Beema Company Limited (RJBCL) reported the highest net worth per share at Rs. 373.33, followed by Life Insurance Corporation Nepal Limited (LICN) at Rs. 187.47 and Sun Nepal Life Insurance (SNLI) at Rs. 154.35. Himalayan Life Insurance (HLI) recorded the lowest net worth per share at Rs. 111.2, while the industry average stood at Rs. 155.15.

P/E Ratio:

IME Life Insurance (ILI) had the lowest P/E ratio at 39.60 times, followed by Asian Life Insurance Company (ALICL) at 41.39 times. This reflects quarter-end ratios, and current ratios may vary with recent stock prices.

*Note: Rastriya Jeewan Beema Company (RJBCL) is not a listed entity; therefore, its P/E ratio is not applicable.

The table below provides a detailed overview of these financial indicators across the 13 life insurance companies for Q4 FY 2081/82.

**Note: All figures are reported in Arba except for net profit, which is presented in crores for clarity.