Know the status of non life insurance companies based on Q3 of 74/75 FY; Rastriya Beema Company wins the race in major indicators

The rise in insurance industry showed a turn around after the dreading earthquake of 2015. The increasing awareness among people and their increasing living standard further benefitted the insurance industry. Today, general public are more likely aware about the importance of insurance.

Among the insurance companies, the listed non-life insurance companies existing in Nepal are:

Thus, to facilitate the enthusiasts in the secondary market, the article has been prepared accumulating the analysis of all the non-life insurance companies that can be useful for investment purpose.

Financial overview:

Number of policies:

Once the paid up capital of insurance companies are in the same range, number of insurance policies identifies the company’s ability to market its schemes and products. Shikhar Insurance Company (SICL) has been maintaining a lead position with 215,602 insurance policies followed by Neco Insurance Company Limited (197,151) and Premier Insurance Company (146,632) as of third quarter of FY 2074/75.

 Net premium:

Among the non-life insurance companies, Shikhar Insurance Company (SICL) has the highest net premium amounting to Rs 122.89 crore. It is followed by Neco Insurance Company (NIL) and Sagarmatha Insurance Company (SIC) with a net premium of Rs 72.08 crore and Rs 65.75 crore.

Insurance fund:

If we analyze the insurance fund of third quarter of 2074/75, Rastriya Beema Company has the highest insurance fund of Rs 1.30 arba. Shikhar Insurance Company (SICL) stands at the second position with a fund of Rs 79.04 crore. NLG Insurance Company (NLG) is seen in the third position with Rs 65.69 crore in insurance fund.

Paid up capital

The governing authorities have asked all the non-insurance companies to meet the paid up capital requirement of atleast Rs 1 arba. Neco Insurance company has the highest paid up capital (Rs 1.12 arba), followed by Shikhar Insurance Company (SICL) (Rs 1.05 arba) and Himalayan General Insurance Company (Rs 102.72 arba).

Reserves and surplus:

Rastriya Beema Company Limited (RBCL) has the highest reserve of Rs 2.02 arba. It is further followed by Premier Insurance Company (PIC) with a reserve fund of Rs 70.46 crore. Finally, Siddhartha Insurance Company (SIC) is seen in the third position with a reserve of Rs 38.84 crore.

Net profit:

Among the non-life insurance companies, the third quarter report shows that Rastriya Beema Company (RBCL) has earned the highest net profit of Rs 46.13 crore. It is further followed by Shikhar Insurance Company Limited (SICL) with net profit of Rs 31.01 crore. Neco Insurance Company Limited further has a net profit of Rs 21.03 crores in the third place.

Annualized EPS

The non-life insurance company that has won the race of annualized EPS is Rastriya Beema Company Limited (RBCL). The company’s annualized EPS stands at Rs 230.69. It is further followed by Sagarmatha Insurance Company (SIC) with an EPS of Rs 42.16. Finally, United Insurance Company (UIC) has an EPS of Rs 40.56.

Net worth:

Analyzing the net worth per share, Rastriya Beema Company Limited (RBCL) has the highest net worth of Rs 859.77 followed by Everest Insurance Company (EIC) with net worth of Rs 377.53. In the third place, we have Premier Insurance Company with net worth per share of Rs 301.76.

PE Ratio:

The PE ratio indicator shows Lumbini General Insurance Limited (LGIL) has the least ratio of 22.75 times. It is further followed by Neck Insurance Company (NIL) with a PE Ratio of 23.09 times. NLG Insurance Limited has a P/E ratio of 25.42 times.

Market price:

The market price of these life insurance companies listed in NEPSE is as follows:

In a nutshell:

What do you think about the performance of non-life insurance industry?

Disclaimer: The sources of provided information are quarterly reports, website and spokesperson. Any misinterpretation from the sources might be not adjusted in the analysis.