How are new Non-Life Insurance Companies prevailing in the market? Know their performance as per latest reports
Tue, Sep 11, 2018 3:26 PM on Featured, Financial Analysis,
~Rishab Agrawal
Last quarter i.e. 4th Quarter of FY 74/75, three new non-life insurance companies posted their unaudited quarterly reports. These new companies were Sanima Insurance Company, Ajod Insurance Limited and General Insurance Company. These companies started their operations recently and only have months of history. Ajod Insurance Company formally opened its gate for customers on 5th July, 2018. General Insurance Company announce its formal operation from 20th June, 2018 and Sanima Insurance commenced its operations from July 2018.
To know the performance of new non-life companies, we have accumulated the data from each of their quarterly reports and compared key metrics and indicators like paid-up capital, reserves and surplus, net profit, number of policies sold, net premium, net worth per share, earnings per share and insurance fund. They are as follows:
|
Name |
Symbol |
Paid-Up Capital in NRS |
Reserves in NRS |
Net Profit in NRS |
Net Premium in NRS |
Insurance Fund in NRS |
Policies Sold |
EPS in NRS |
Net Worth in NRS |
|---|---|---|---|---|---|---|---|---|---|
|
Sanima Insurance Company Limited |
SAICL |
700,000,000 |
8,439,617 |
23,040,297 |
131,079 |
11,597,484 |
15 |
3.29 |
101.20 |
|
Ajod Insurance Limited |
AJOD |
700,000,000 |
9,028,000 |
20,063,000 |
138,000 |
10,032,000 |
33 |
2.87 |
102.87 |
|
General Insurance Company |
GICNL |
700,000,000 |
9,445,000 |
20,990,000 |
1,171,000 |
10,495,000 |
193 |
3.00 |
102.85 |
The three new non-life companies have uniform paid-up capital of Rs.700 Million. Amongst the above mentioned companies, General Insurance Company is ahead in terms of Reserves and Surplus, Net Premium and Number of Policies Sold. Sanima Insurance is ahead in terms of Net Profit, Insurance Fund and Earnings per Share although it has sold least number of policies amongst the three. Finally, Ajod Insurance stands ahead only in terms of Net Worth per Share which stands at Rs.102.85 having sold 33 policies.
Even though these companies started their formal operations at almost the same time, high disparity can be seen in number of policies sold. While General Insurance was able to sell 193 policies, Sanima Insurance and Ajod Insurance were able to sell only 15 and 33 policies respectively. This can be attributed to the efficiency of the management, the quality and ease of obtaining insurance and most importantly, the after sales services provided to its customers.
However, these are young non-life insurance companies and are yet to face many challenges that will come across their path. The way these companies handle challenges and utilize opportunities is what will truly shape them into strong and reliable players in the market.
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