Nepal Life Insurance whopping increment in its reserve & life insurance fund; Prime & Asian Life managed to hike its Q4 earning by 42.97% & 37.58% respectively

Nepal Life Insurance Company Limited (NLIC) has earned Rs 41.65 crore in net profit 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 has toppled by 54.05 percent. It had earned Rs 90.66 crore in the corresponding period of the last fiscal year. On the other hand, its net premium earnings has increased by 18.9 percent at Rs 12.04 arba from Rs 10.13 arba. It has also earned Rs 2.02 crore as reinsurance commission this year. As of the end of Q4 this year, it’s paid up capital stand at Rs 3.09 arba. Its reserves and surplus rises to Rs 4.74 arba from 84.06 crore and life insurance fund amounts to Rs 40.28 arba from Rs 31.40 arba. NLIC has paid claims worth Rs 2.88 arba this year, while it has pending claims of Rs 73.94 crore. NLIC’s current earning per share (EPS) and net worth per share stands at Rs 13.45 and Rs 260.36, while P/E ratio is at 159.67 times. Likewise, Prime Life Insurance Company Limited (PLIC) has also reported Rs 15.87 crore as net profit 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 has inclined by 42.97 percent. It had earned Rs 11.10 crore in the same period fiscal year. Its net premium collection has increased by 16.25 percent to Rs 1.86 arba from Rs 1.60 arba. As of the end of Q4 this year, it’s paid up capital stand at Rs 48.81 crore. PLIC has announced 25% bonus shares to its shareholders from the profit of last four fiscal year 2069/70, 2070/71, 2071/72 and 2072/73. After the issuance of this bonus share, its paid up capital will reach Rs 61.01 crore from existing Rs 48.81 crore. 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, PLIC should further increase its capital by around Rs 1.38 arba. Its reserves and surplus surges to Rs 88.80 crore from 68.50 crore and life insurance fund amounts to Rs 4.82 arba. PLIC has paid claims worth Rs 1.94 arba this year, while it has pending claims of Rs 73.94 crore. PLIC’s current earning per share (EPS) stands at Rs 32.53 and net worth per share now stands at Rs 294.82, while P/E ratio is at 78.55 times. Similarly, Asian Life Insurance Company Limited (ALICL) has also shown Rs 4.21 crore as net profit 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 has inclined by 37.58 percent. It had earned Rs 3.06 crore in the same period fiscal year. Its net premium collection has increased by 15.07 percent to Rs 2.29 arba from Rs 1.99 arba. As of the end of Q4 this year, it’s paid up capital stand at Rs 80.55 crore. Its reserve and surplus has decreased to Rs 18.98 crore from Rs 20.25 crore in the corresponding fourth quarter of the FY 2072/73. Also, the company has life insurance fund of Rs 10.08 arba. To meet the capital requirement, Asian Life insurance has planned to float 50% right shares worth Rs.60 crore 42 lakhs and 10% bonus share worth Rs. 18 crore 74 thousands for the fiscal year 73/74 and FY 74/75 respectively. Asian life insurance had propose to issue 50% right shares of Rs 40 crore 28 lakhs right shares in the fiscal year 72/73 and the company is seeking approval from the board for the approval. ALICL has paid claims worth Rs 17.21 crore this year, while it has pending claims of Rs 1.32 crore. ALICL’s current earning per share (EPS) stands at Rs 5.23 and net worth per share now stands at Rs 148.29, while P/E ratio is at 278.88 times.