LICN’s earns Rs 92.62 lakh in Q1; profit to rise after actuarial valuation of the fund

ShareSansar, November 14:

Life Insurance Corporation Nepal Limited (LICN) has posted a massive net profit rise of 343.60 percent in the first quarter of the fiscal year 2071/72 as compared to the previous fiscal year 2070/71.

According to an unaudited report for the first quarter published by LICN today, its net profit stands at Rs 92.62 lakh as compared to Rs 20.88 lakh in the corresponding quarter.

The net profit figure excludes the income they earn from the actuarial valuation of the life insurance fund.  Income from the actuarial valuation of the life insurance fund is one of the major source of earnings of the life insurance companies. However, the actuarial valuations are done only at the end of the fiscal year by the insurance companies.

Therefore, the real income increases only once the income from the life insurance fund is finalized by the actuarial evaluator.

LICN’s earn Rs 18.66 crore from the actuarial valuation of life insurance fund in the last FY 2070/71. Seeing the financial report of the first quarter, the expected earnings from such valuation may increase in the current fiscal year.

The most encouraging aspect of LICN’s financial report for the first quarter is that its insurance fund has reached 16.62 arba figures; up from Rs 12.80 arba at the end of the previous fiscal year.

This data shows that its core business – the number of policies as well as profit from other business activities – have increased tremendously during the given period.

The number of policies has drastically increased to 4.25 lakh units, up from just 3.34 lakh units in the last FY.

LICN EPS is Rs 1.41, P/E ratio is 2380.89 and net worth per share stands at Rs 151.76

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