Nepal Life Insurance earns Rs 5.89 crore in Q1; real profit to rise after actuarial valuation of the insurance fund

Nepal Life Insurance Company Limited (NLIC) has posted net profit rise by 257.94% for the first quarter of the fiscal year 2073/74. As per the unaudited report for the first quarter published today, the insurance company reported a net profit of Rs.5.89 crore in the Q1 of current fiscal year, up from 1.64 crore in the corresponding period last year. The net profit figure excludes the income they earn from the actuarial valuation of the life insurance fund.  Income from the actuarial valuation of the life insurance fund is one of the major sources of earnings of the life insurance companies. However, the actuarial valuations are done only at the end of the fiscal year by the insurance companies. Therefore, the real income increases only once the income from the life insurance fund is finalized by the actuarial evaluator. The company’s net earnings from premiums grew to Rs.2.66 arba from Rs.1.99arba. NLIC has a paid up capital of Rs. 2.16 arba in Q1. The reserve fund of the company has increased to Rs. 31.82 crore in Q1. Meanwhile, the company’s life insurance fund has risen to Rs.34.28 arba from Rs. 25.53 arba. The company’s number of policy holders has risen to 10.20 lakhs this quarter compared to 9.85 lakh reported in the same period last year. Nepal Life’s annualized Earning Per Share (EPS) stands at Rs. 10.88, net worth per share is at Rs. 121.91 and P/E ratio at 372.17 times. Nepal Life Insurance is in the final stage to issue FPO to general public and its last trading price stands at Rs 3700.