Life Insurance Corporation Nepal earns Rs 10.71 crore till Q3; still need to increase capital by 34.22% to meet regulatory requirement
Sun, May 5, 2019 8:44 AM on Financial Analysis, Latest,
Life Insurance Corporation (Nepal) Limited (LICN) net profit has increased by 7.38% in the third quarter of the current fiscal year 2075/76. The company earnings have increased from Rs 9.98 crore in the Q3 of the last fiscal year to Rs 10.71 crore in Q3 of this FY 2075/76. The net profit figure is without the profit generated from actuarial valuation of assets and liabilities.
As per the unaudited report for the third quarter published today, LICN has a paid up capital of Rs 1.49 arba with a reserve of Rs 58.35 crore. The LICN has to increase its paid-up by 34.22% more to meet the regulators minimum paid-up requirement criteria of Rs 2 arba for the life insurance company.
LICN’s AGM and dividend announcement is still pending for the fiscal year 2074/75.
The company has massive Rs 51.48 arba in life insurance fund and Rs 14.39 crore in contingent fund.
The net earnings from premium rose by 26.42% to Rs 8.79 arba till Q3 of FY 75/76 from Rs 6.95 arba in the corresponding quarter of last fiscal year. The company has earned Rs 2.90 arba from investment, loans and others headings.
The company net claim payment rises by 37.77% to Rs 2.21 arba till Q3.
The company’s number of policyholders decreased slightly from 7.30 lakh in the corresponding quarter to 7.10 lakh in Q3 of the current fiscal year.
It's annualized EPS and net worth per share stands at Rs 9.56 and at Rs 148.66. The P/E ratio of the company is at 161.61 times.
Major Highlights:
|
Particulars (In Rs '000) |
Life Insurance Corporation (Nepal0 |
||
|---|---|---|---|
|
Q3 2075/76 |
Q3 2074/75 |
Difference |
|
|
Paid Up Capital |
1,494,838.80 |
1,334,677.50 |
12.00% |
|
Reserve and Surplus |
583,541.43 |
361,200.01 |
61.56% |
|
Life Insurance Fund |
51,488,440.87 |
40,584,946.55 |
26.87% |
|
Contingent Fund |
143,920.62 |
112,391.60 |
28.05% |
|
Net Premium |
8,790,558.46 |
6,953,620.74 |
26.42% |
|
Re-Insurance Income |
9,335.66 |
12,907.81 |
-27.67% |
|
Income from Investment, Loan and others |
2,903,735.98 |
2,377,519.68 |
22.13% |
|
Claim Payment (Net) |
2,210,465.82 |
1,604,409.30 |
37.77% |
|
Agent Commission |
963,965.23 |
736,108.08 |
30.95% |
|
Gross Profit |
39,865.57 |
72,793.65 |
-45.23% |
|
Transferred to Life Insurance Fund |
8,232,466.36 |
6,689,742.59 |
23.06% |
|
Net Profit |
107,171.04 |
99,807.57 |
7.38% |
|
No of Policies |
710,872.00 |
730,172.00 |
-2.64% |
|
Annualized EPS (In Rs.) |
9.56 |
9.97 |
-4.13% |
|
Net Worth per Share (In Rs.) |
148.66 |
135.48 |
9.73% |
|
PE Ratio |
161.61 |
- |
- |
