Nepal Life Insurance net profit rises by 6.37% in Q3 despite Rs 20 crore provision for loss; number of policies increases to 11.12 lakh

Nepal Life Insurance Company Limited (NLIC) has posted 6.37% rise in net profit for the third quarter of the current fiscal year 2074/75. It has earned net profit of Rs 43.57 crore in the Q3 of current fiscal year, up from Rs 40.96 crore in the corresponding period last year.

As per the unaudited report for the third quarter published today, the net earnings from premium rose to Rs 10.69 arba in Q3 from Rs 7.81 arba in the corresponding quarter. The company has managed to hike its number of policy holders to 11.12 lakh from 10.24 lakh in the corresponding quarter last year.

Citing the bearish stock market, NLIC has kept aside Rs 20.38 crore in provision for possible loss for its share investments. Despite this massive provision, the company has been able to post decent profit.

NLIC has a paid-up capital of Rs 4.39 arba with reserve of Rs 3.48 arba. Likewise, the company’s life insurance fund has increased to Rs 47.68 arba from Rs 37.18 arba in the corresponding quarter. Its annualized EPS has stands at Rs 13.21, net worth per share at Rs 186.55 and P/E ratio at 87.40 times.

NLIC had provided 42% bonus share and 28.50% cash dividend to its shareholders from the profit it earned in last fiscal year 2073/74. It has an authorized capital of Rs 8 arba.