Investors Who Purchased Non-Life Insurance shares During The All-Time High Have Lost An Average Of 41% Of Their Investment
Mon, May 30, 2022 11:32 AM on NEPSE News, Share Listed, Exclusive, Latest,
The stock prices of 18 non-life insurance businesses listed on the Nepal Stock Exchange (NEPSE) have dropped 41% since their peak on August 18, 21. It means that investors who purchased Non-Life Insurance shares at the highest price point have lost an average of 41% due to dropping prices alone.
The drop of nearly a thousand points on the indicator, which had climbed as high as 3200, has had a negative influence on most companies' values. Non-life insurance stocks have also suffered as a result of this. As the index has set a target of Rs 3,200, the value of practically every listed firm in NEPSE has been steadily dropping along with the declining market rhythm.
Non-life insurance contributes to roughly 5.77 percent of the entire market capitalization, according to the most recent estimates. Rastriya Beema Company Limited, with 1.33 percent of the total market capitalization, is the largest of the 18 Non-Life Insurance firms.
| S.N. | Symbol | Company | 18th August 21,Price | 25th May 22,Price | Difference | % of Difference | Share Capital Before Rghts/Bonus Adjustment | Market Capitalization at Highest Price | Share Capital After Rights/Bonus Adjustment | Market Capitalization at Today's Price | Difference(Rs) | Difference(%) | Weightage |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | AIL | Ajod Insurance Limited | 823 | 537.50 | (285.50) | -35% | 10,000,000.00 | 8,230,000,000.00 | 10,000,000.00 | 5,375,000,000.00 | (2,855,000,000.00) | -34.69% | 0.17% |
| 2 | EIC | Everest Insurance Company Limited | 802 | 500.00 | (302.00) | -38% | 11,836,044.34 | 9,492,507,560.38 | 12,546,207.00 | 6,273,103,500.00 | (3,219,404,060.38) | -33.92% | 0.20% |
| 3 | GIC | General Insurance Company Nepal Limited | 714 | 478.10 | (235.90) | -33% | 10,000,000.00 | 7,140,000,000.00 | 10,000,000.00 | 4,781,000,000.00 | (2,359,000,000.00) | -33.04% | 0.15% |
| 4 | HGI | Himalayan General Insurance Company Limited | 850 | 520.00 | (330.00) | -39% | 11,003,367.09 | 9,352,862,025.32 | 11,735,091.00 | 6,102,247,320.00 | (3,250,614,705.32) | -34.76% | 0.19% |
| 5 | IGI | IME General Insurance Limited | 1,235.00 | 473.00 | (762.00) | -62% | 11,575,859.81 | 14,296,186,869.16 | 17,016,513.93 | 8,048,811,086.64 | (6,247,375,782.52) | -43.70% | 0.25% |
| 6 | LGIL | Lumbini General Insurance Limited | 883 | 518.00 | (365.00) | -41% | 11,988,900.00 | 10,586,198,700.00 | 11,988,900.00 | 6,210,250,200.00 | (4,375,948,500.00) | -41.34% | 0.20% |
| 7 | NICL | Nepal Insurance Company Limited | 1,034.00 | 615.00 | (419.00) | -41% | 12,423,386.00 | 12,845,781,124.00 | 12,423,386.00 | 7,640,382,390.00 | (5,205,398,734.00) | -40.52% | 0.24% |
| 8 | NIL | Neco Insurance Company Limited | 1,465.00 | 789.00 | (676.00) | -46% | 15,216,337.39 | 22,291,934,278.26 | 17,498,788.00 | 13,806,543,732.00 | (8,485,390,546.26) | -38.06% | 0.43% |
| 9 | NLG | NLG Insurance Company Limited | 1,096.00 | 624.00 | (472.00) | -43% | 12,060,130.91 | 13,217,903,476.36 | 13,266,144.00 | 8,278,073,856.00 | (4,939,829,620.36) | -37.37% | 0.26% |
| 10 | PIC | Premier Insurance Company (Nepal) Limited | 1,260.00 | 675.90 | (584.10) | -46% | 10,745,600.00 | 13,539,456,000.00 | 12,276,848.00 | 8,297,921,563.20 | (5,241,534,436.80) | -38.71% | 0.26% |
| 11 | PICL | Prudential Insurance Company Limited | 838 | 422.90 | (415.10) | -50% | 11,085,467.29 | 9,289,621,588.79 | 11,861,450.00 | 5,016,207,205.00 | (4,273,414,383.79) | -46.00% | 0.16% |
| 12 | PRIN | Prabhu Insurance Company Limited | 1,000.00 | 551.60 | (448.40) | -45% | 11,619,024.32 | 11,619,024,324.32 | 12,897,117.00 | 7,114,049,737.20 | (4,504,974,587.12) | -38.77% | 0.22% |
| 13 | RBCL | Rastriya Beema Company Limited | 20,190.00 | 15,800.00 | (4,390.00) | -22% | 2,666,390.00 | 53,834,414,100.00 | 2,666,390.00 | 42,128,962,000.00 | (11,705,452,100.00) | -21.74% | 1.33% |
| 14 | SGI | Sanima General Insurance Limited | 737 | 453.00 | (284.00) | -39% | 10,000,000.00 | 7,370,000,000.00 | 10,000,000.00 | 4,530,000,000.00 | (2,840,000,000.00) | -38.53% | 0.14% |
| 15 | SIC | Sagarmatha Insurance Company Limited | 1,440.10 | 903.00 | (537.10) | -37% | 11,113,575.00 | 16,004,659,357.50 | 13,336,290.00 | 12,042,669,870.00 | (3,961,989,487.50) | -24.76% | 0.38% |
| 16 | SICL | Shikhar Insurance Company Limited | 1,979.00 | 1,066.00 | (913.00) | -46% | 17,585,240.00 | 34,801,189,960.00 | 22,860,812.00 | 24,369,625,592.00 | (10,431,564,368.00) | -29.97% | 0.77% |
| 17 | SIL | Siddhartha Insurance Limited | 1,097.00 | 657.50 | (439.50) | -40% | 11,200,000.00 | 12,286,400,000.00 | 12,880,000.00 | 8,468,600,000.00 | (3,817,800,000.00) | -31.07% | 0.27% |
| 18 | UIC | United Insurance Company (Nepal) Limited | 775 | 454.90 | (320.10) | -41% | 10,281,600.00 | 7,968,240,000.00 | 10,281,600.00 | 4,677,099,840.00 | (3,291,140,160.00) | -41.30% | 0.15% |
| AVERAGE | 2123.22778 | 1446.6333 | -41% | 11,244,495.68 | 15,231,465,520.23 | 12,529,752.05 | 10,175,585,994.00 | -36.01% | 5.77% | ||||
| SUM | 38218.1 | 26039.4 | 202400922.2 | 274,166,379,364.09 | 225535536.9 | 183,160,547,892.04 |
Investors who purchased Prudential Insurance Company Limited (PICL) shares at the highest price of Rs. 838 have already lost half of their Investment. Even though PICL distributed 7 percent bonus shares as dividends last year, the dividends could not compensate for the loss incurred due to the falling price of the company.
| NEPSE INDEX 18th Aug, 21 | NEPSE INDEX 25 May, 22 | Difference (%) | Non-Life Ins. Index-18 Aug,21 | Non Life Ins. Index-25 May, 22 | Difference (%) | Market Capitalization @18 Auy, 21 | Market Capitalization @25th May, 22 | Difference |
|---|---|---|---|---|---|---|---|---|
| 3,198.60 | 2,231.57 | -30% | 14,323.71 | 9,543.49 | -33% | 4,468,505,000,000.00 | 3,174,262,270,000.00 | -29% |
As seen in the chart above, the overall NEPSE Index has decreased by 30 percent since the all-time high of 18th August 2021. Likewise, the Non-Life Insurance sector was also affected due to the decline in the stock prices, and the overall prices of the 18- Non-Life Insurance have reduced by 33 percent, same is the case with the overall market capitalization which has declined by 29 percent since the all-time high.
