National & Surya Life Insurance’s reserves increases by 269.33% to Rs 61.31 crore & 26.20% to Rs 32.46 crore respectively; Life Insurance Corporation’s profit shrinks by 63.69% to Rs 11.67 crore

National Life Insurance Company Limited (NLICL) has stated whooping increase in its net profit by 38.93% by the end of fourth quarter of the last fiscal year 2073/74. As per the unaudited financial statement of the life insurance company published today, its net profit amounts to Rs 23.55 crore in Q4 of the FY 2073/74 from Rs 16.95 crore in corresponding Q4 of 2072/73. On the other hand, its net premium earnings has increased by 34.37 percent at Rs 4.73 arba from Rs 3.52 arba. It has also earned Rs 2.00 crore as reinsurance commission this year. As of the end of Q4 this year, it’s paid up capital stand at Rs 1.32 arba. Its reserves and surplus rises to Rs 61.31 crore from Rs 16.60 crore by massive 269.33% and life insurance fund amounts to Rs 17.37 arba from Rs 14.56 arba. NLICL has distributed 25% bonus shares to its shareholders from the profit it had earned in the FY 2072/73 but still it is not listed for trading in NEPSE. To meet the capital requirement as required by the Insurance Board, it has to hike its capital by 21.21%. NLICL has already announced to issue 60% right shares to its shareholders. After 60% right share issue, its paid up capital will reach Rs 2.64 arba. NLICL has paid claims worth Rs 1.55 arba this year, while it has pending claims of Rs 13.69 crore only. NLICL’s current earning per share (EPS) stands at Rs 17.78 and net worth per share stands at Rs 153.45 , while P/E ratio is at 129.38 times.   Likewise, Surya Life Insurance Company Limited (SLICL) has also stated increase in its net profit by 11.90% by the end of fourth quarter of the last fiscal year 2073/74. As per the unaudited financial statement of the life insurance company published today, its net profit amounts to Rs 9.69 crore in Q4 of the FY 2073/74 from Rs 8.39 crore in corresponding Q4 of 2072/73. On the other hand, its net premium earnings amounts to Rs 12.64 crore from Rs 10.10 crore. As of the end of Q4 this year, it’s paid up capital stand at Rs 65.62 crore. Its reserves and surplus rises to Rs 32.46 crore from Rs 25.72 crore by 26.20% and life insurance fund amounts to Rs 2.43 arba from Rs 1.64 arba. SLICL has proposed 10% bonus shares to its shareholders from the profit it had earned in the FY 2072/73 and 40% right shares as well. After the issuance of the proposed 10% bonus share and 40% right share, its paid up capital will reach Rs 1.01 arba. As per Insurance Board’s directive for all life insurance companies to increase their paid up capital to a minimum of Rs 2 arba by the end of FY 2074/75, SLICL will need to issue a further capital hike of around Rs 99 crore (98%). SLICL has paid claims worth Rs 11.22 crore this year, while it has pending claims of Rs 32.26 lakh only. SLICL’s current earning per share (EPS) stands at Rs 14.78 and net worth per share stands at Rs 154.69 , while P/E ratio is at 72.40 times.   Life Insurance Corporation (Nepal) Limited (LICN) has stated decrease in its net profit by 63.69% by the end of fourth quarter of the last fiscal year 2073/74. As per the unaudited financial statement of the life insurance company published today, its net profit shrinks to Rs 11.67 crore in Q4 of the FY 2073/74 from Rs 32.14 crore in corresponding Q4 of 2072/73. On the other hand, its net premium earnings reached to Rs 8.50 arba from Rs 6.95 arba. As of the end of Q4 this year, it’s paid up capital stand at Rs 1.33 arba. Its reserves and surplus diminished to Rs 26.05 crore from Rs 40.89 crore by 36.29% and life insurance fund amounts to Rs 33.89 arba from Rs 26.48 arba. LICN had distributed 24.8% bonus shares to its shareholders from the profit it had earned in the FY 2072/73. As per Insurance Board’s directive for all life insurance companies to increase their paid up capital to a minimum of Rs 2 arba by the end of FY 2074/75, LICN will need to issue a further capital hike of around Rs 67 crore (50.38%). LICN has paid claims worth Rs 1.81 arba this year, while it has pending claims of Rs 2.45 lakh only. LICN’s current earning per share (EPS) stands at Rs 8.75 and net worth per share stands at Rs 126.05 , while P/E ratio is at 245.91 times.