Life Insurance Corporation earns Rs 7.68 crore till Q2 with EPS of Rs 7.65; has Rs 61.09 arba in life insurance fund

Wed, Feb 12, 2020 8:09 AM on Financial Analysis, Latest,
Life Insur...

Life Insurance Corporation (Nepal) Limited (LICN)’s net profit increased by meager 7.04% in the second quarter of the current fiscal year 2076/77.

The company earnings have increased from Rs 7.17 crore in the Q2 of the FY 2075/76 to Rs 7.68 crore in Q2 of FY 2076/77. The net profit figure is without the profit generated from the actuarial valuation of assets and liabilities since FY 2075/76.

As per the unaudited report for the second quarter published today, LICN has a paid-up capital of Rs 2.01 arba with a reserve of Rs 47.53 crore.

The company has a massive Rs 61.09 arba in life insurance fund and Rs 23.62 crore in the contingent fund.

The net earnings from premium rises by 32.42% to Rs 7.65 arba till Q2 of FY 2076/77 from Rs 5.78 arba in the corresponding quarter of last fiscal year. The company has earned Rs 2.20 arba from investment, loans and others headings.

The company’s number of policyholders increased from 7.25 lakh in the corresponding quarter to 7.51 lakh in Q2 of the current fiscal year.

It's annualized EPS and net worth per share stands at Rs 7.65 and Rs 135.41. The P/E ratio of the company is at 151.72 times.

LICN’s yet to announce dividend for the last fiscal year 2075/76 and its current market price is Rs 1210.

Major Highlights:

Particulars (In Rs '000)

Life Insurance Corporation

Q2 2076/77

Q2 2075/76

Difference

Paid Up Capital

2,010,000.00

1,334,677.50

50.60%

Reserve and Surplus

475,384.58

548,154.61

-13.28%

Life Insurance Fund

61,097,177.95

48,687,056.14

25.49%

Contingent Fund

236,283.13

143,920.63

64.18%

Net Premium

7,656,862.62

5,782,290.56

32.42%

Re-Insurance Income

8,131,560.00

6,216,812.00

30.80%

Income from Investment, Loan and others

2,202,130.84

1,899,845.93

15.91%

Claim Payment (Net)

1,838,674.77

1,434,927.36

28.14%

Agent Commission

813,925.11

630,946.51

29.00%

Gross Profit

19,972.52

31,736.31

-37.07%

Transferred to Life Insurance Fund

7,066,957.19

5,431,081.64

30.12%

Net Profit

76,841.21

71,784.22

7.04%

No of Policies

751,503.00

725,073.00

3.65%

Annualized EPS (In Rs.)

7.65

10.76

-28.92%

Net Worth per Share (In Rs.)

135.41

151.85

-10.83%

PE Ratio

151.72

-

-

Qtr End Price

1,160.00