Non-life insurance companies earned a net premium of Rs 29.74 crores in the second quarter! See the detailed comparative analysis

The rise in insurance industry showed a turn around after the dreading earthquake of 2015. The increasing awareness among people and their increasing living standard further benefitted the insurance industry. Today, general public are more likely aware about the importance of insurance.

Among the insurance companies, the old listed non-life insurance companies existing in Nepal are:

Besides the above mentioned companies, two unlisted companies are National Insurance Company Limited and Oriental Insurance Company Limited. Similarly, General Insurance Company Nepal Limited, Ajod Insurance Limited and Sanima Insurance Company Limited are newly licensed insurance companies. Thus, to facilitate the enthusiasts in the secondary market, the article has been prepared accumulating the analysis of all the non-life insurance companies that can be useful for investment purpose. The article does not include unlisted old insurance companies.

Number of policies:

Once the paid up capital of insurance companies are in the same range, number of insurance policies identifies the company’s ability to market its schemes and products. Shikhar Insurance Company (SICL) has been maintaining a lead position with 159,909 insurance policies followed by Neco Insurance Company Limited (NIL) (138,368) and Premier Insurance Company (PIC) (103,121) as of second quarter of FY 2075/76. The industry average number of policies is around 54,922.67. Eight companies have been able to maintain the number of policies above average.

Among the newly listed non-life insurance companies, the number of policies of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 2,373, 13,228 and 8,980 respectively.

Net premium:

Among the mentioned non-life insurance companies, Shikhar Insurance Company (SICL) has the highest net premium amounting to Rs 90.50 crore. It is followed by Neco Insurance Company (NIL) and Sagarmatha Insurance Company (SIC) with a net premium of Rs 60.31 crore and Rs 52.00 crore. The industry average net premium stands at Rs 29.74 crore where seven companies are operating above the average range.

Among the newly listed non-life insurance companies, the net premium of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 1.09 crores, 3.76 crores and 5.16 crores respectively.

Insurance fund:

If we analyze the insurance fund of second quarter of 2075/76, Rastriya Beema Company Limited (RBCL) has the highest insurance fund of Rs 1.43 arba. Shikhar Insurance Company (SICL) stands at the second position with a fund of Rs 95.72 crore. NLG Insurance Company (NLG) is seen in the third position with Rs 74.97 crore in insurance fund. The industry average insurance fund stands at Rs 44.52 crore with nine companies above average insurance fund.

Among the newly listed non-life insurance companies, the insurance fund of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 1.80 crores, 1.69 crores and 62 lakhs respectively.

Paid up capital

The governing authorities have asked all the non-insurance companies to meet the paid up capital requirement of at least Rs 1 arba. Neco Insurance Company Limited (NIL) has the highest paid up capital (Rs 1.17 arba), followed by Shikhar Insurance Company (SICL) (Rs 1.05 arba) and Himalayan General Insurance Company (HGI) (Rs 1.02 arba). Only four companies have been able to attain the paid up capital requirement so, bonus shares and right shares can be expected from the remaining companies.

Among the newly listed non-life insurance companies, the paid up capital of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) is 70 arba.

Reserves and surplus:

Rastriya Beema Company Limited (RBCL) has the highest reserve of Rs 2.15 arba. It is further followed by Sagarmatha Insurance Company (SIC) with a reserve fund of Rs 61.28 crore. Finally, Premier Insurance Company (PIC) is seen in the third position with a reserve of Rs 60.11 crore. The industry average reserve and surplus stands at Rs 33.83 crore with only five companies above the average.

Among the newly listed non-life insurance companies, the reserves and surplus of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 14.15 crores, 2.43 crores and 1.52 crores respectively.

Net profit:

Among the non-life insurance companies, the second quarter report shows that Shikhar Insurance Company Limited (SICL) has earned the highest net profit of Rs 21.20 crore. It is further followed by Neco Insurance Company Limited (NIL) with net profit of Rs 17.03 crore. Rastriya Beema Company Limited (RBCL) further has a net profit of Rs 16.85 crores in the third place. The industry average net profit stands at Rs 7.34 crore. Eight companies stand above the industry average range of Rs 7.34 crore.

Among the newly listed non-life insurance companies, the net profit of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 1.28 crores, 1.24 crores and 1.29 crores respectively.

Annualized EPS

The non-life insurance company that has won the race of annualized EPS is Rastriya Beema Company Limited (RBCL). The company’s annualized EPS stands at Rs 126.35. It is further followed by Shikhar Insurance Company (SICL) with an EPS of Rs 40.10. Finally, Everest Insurance Company Limited (EIC) has an EPS of Rs 37.66.

Among the newly listed non-life insurance companies, the annualized EPS of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 3.66, 7.08 and 3.69 respectively.

Net worth:

Analyzing the net worth per share, Rastriya Beema Company Limited (RBCL) has the highest net worth of Rs 1446.93 followed by Sagarmatha Insurance Company (SIC) with net worth of Rs 304.65. In the third place, we have Premier Insurance Company (PIC) with net worth per share of Rs 276.57. The industry average net worth per share stands at Rs 256.42 with only three companies above the industry average.

Among the newly listed non-life insurance companies, the net worth of Sanima Insurance Company Limited (SAICL), Ajod Insurance Limited (AJOD) and General Insurance Company Nepal Limited (GINCL) are 102.02, 103.47 and 104.60 respectively.

PE Ratio:

The PE ratio indicator shows Nepal Insurance Company Limited (NICL) has the least ratio of 15.69 times. It is further followed by Neco Insurance Company Limited (NIL) with a PE Ratio of 17.51 times. IME General Insurance Limited (IGI) has a P/E ratio of 18.90 times.

In a nutshell:

What do you think about the performance of non-life insurance industry?

Disclaimer: The sources of provided information are quarterly reports, website and spokesperson. Any misinterpretation from the sources might be not adjusted in the analysis.