Major fundamental indicators that Investors must know about Non-Life Insurance Companies
Mon, Oct 3, 2016 5:18 PM on Latest, Exclusive, Financial Analysis, Featured, Stock Market,
Insurance Index has shot up and insurance companies’ scrip are the most preferred stock by the investors. After the earthquake of April 2015, insurance stock are doing exceptionally well and price of most of the insurance companies is trading at high range in Nepal Stock Exchange (NEPSE). Many factors have led to the rise of insurance stocks. Government has prioritized the insurance business, awareness about the insurance is high after earthquake and more insurance companies are able to increase their business with satisfactory profit growth.
Cornering is also one of the major factors which created artificial short supply of insurance stock leading the price rise. There is a rumor that Insurance Board is coming out with new paid up capital requirement scheme for insurance companies very soon. With this expectation, investors are paying high price with an expectation of high bonus and right share.
But investors must be aware that whether the rising price of insurance company is justifiable or not. For this they need to know the major indicators which are presented below:
The highest percentage change in term of Paid up is of United Insurance at 150 percent and the highest paid up capital of non-life insurance in terms of amount is of Shikhar insurance. The industry growth rate of nonlife paid up capital is 21 percent.
Of the total industries, seven companies growth is higher than the industry and 2 companies reserve is negative in the fourth quarter. The highest percentage change in reserve is of Shikhar insurance. Lumbini General Insurance Limited (LGIL)’s, reserve has increased above 100 percent. The industry growth on reserve is 18.14 percent.
The insurance fund of non-life industry is 37.06 percent. Six companies reserve has changed by more than 50 percent. However, Everest Insurance has no change in its insurance fund.
United Insurance has the highest change in net profit. United insurance net profit increment is 1437.20 percent and Nepal Insurance net profit increment is 341.49 percent. Everest Insurance and Rastriya Beema Company’s profit has declined compared to the last year’s corresponding quarter. The highest amount in net profit is of Shikhar Insurance. The insurance company earned net profit of Rs 31.02 crore.
The highest earning per share of non-life insurance company is RBCL at Rs 131.63 and last year the company’s earnings per share was at Rs 199.94.the non-life insurance company earnings per share increment is 5.2 percent . United Insurance, Lumbini General Insurance, Prabhu Insurance and Nepal Insurance’s earning per share increment is more than 100 percent.
The highest percentage change in term of Paid up is of United Insurance at 150 percent and the highest paid up capital of non-life insurance in terms of amount is of Shikhar insurance. The industry growth rate of nonlife paid up capital is 21 percent.
Of the total industries, seven companies growth is higher than the industry and 2 companies reserve is negative in the fourth quarter. The highest percentage change in reserve is of Shikhar insurance. Lumbini General Insurance Limited (LGIL)’s, reserve has increased above 100 percent. The industry growth on reserve is 18.14 percent.
The insurance fund of non-life industry is 37.06 percent. Six companies reserve has changed by more than 50 percent. However, Everest Insurance has no change in its insurance fund.
United Insurance has the highest change in net profit. United insurance net profit increment is 1437.20 percent and Nepal Insurance net profit increment is 341.49 percent. Everest Insurance and Rastriya Beema Company’s profit has declined compared to the last year’s corresponding quarter. The highest amount in net profit is of Shikhar Insurance. The insurance company earned net profit of Rs 31.02 crore.
The highest earning per share of non-life insurance company is RBCL at Rs 131.63 and last year the company’s earnings per share was at Rs 199.94.the non-life insurance company earnings per share increment is 5.2 percent . United Insurance, Lumbini General Insurance, Prabhu Insurance and Nepal Insurance’s earning per share increment is more than 100 percent.
