NB Insurance reports 181% increase in net profit; EPS at a healthy Rs 30; P/E ratio 59 times

NB Insurance Company Limited (NBIL) has posted a 181.48% rise in net profit in the second quarter of the ongoing fiscal year 2073/74. As per the unaudited financial statement published by the non-life insurance company today, its net profit has increased to Rs 6.20 crore till the end of Q2, up from Rs 2.20 crore in the second quarter last year. NBIL’s net premium has increased to Rs 23.72 crore, an increase of almost 4 times from the figure last year. The number of policies has increased from 14,548 to 40,111 in the same period. Its paid up capital currently stands at Rs 27 crore with a reserve of Rs 9.35 crore. Its investments has reached Rs 13.67 crore. In this period, it paid claims worth Rs 22 crore while it has pending claims of Rs 9.35 crore only. Its annualized EPS now stands at Rs 30.65, net worth at Rs 118.10 per share and P/E ratio at 57 times. NBIL is going to float right shares in the ratio 1:1, for which it has set Jestha 4, 2074 as the book closure date. After the issuance of 100% right shares, its paid up capital will reach Rs 54 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NBIL will need to issue a further capital hike of Rs 46 crore (around 86%).