Performance of Non-life Insurance Companies in first quarter of 2076/77; Shikhar Insurance and Rastriya Beema Company on lead

Performanc...

There are 20 non-life insurance companies, currently in operation, in Nepal. Out of them, 15 companies are listed in Nepal Stock Exchange (NEPSE) and 3 companies are relatively new and haven't been listed in NEPSE. The other 2 companies vis-à-vis National Insurance and Oriental Insurance are old companies but they haven't floated IPO yet as they are the subsidiary companies of Indian Insurance Companies.

The following table shows the list of companies with their symbols.

Paid-up capital

The minimum paid-up capital of the non-life insurance companies has been set at Rs 1 arba by the regulator, Insurance Board (IB).

As seen on the table below, 10 companies have met their capital requirements while the other eight companies haven't met their capital mark yet.

Neco Insurance has the highest paid-up capital of Rs 1.17 arba. The three new companies, Ajod Insurance, Sanima General Insurance, and General Insurance have paid-up capital of Rs 70 crore each. Likewise, RBCL has the lowest capital of Rs 26.66 crore only.

From the companies not meeting the capital mark, LGIL is currently issuing 20% right after which the capital mark will be met. Similarly, PICL and NLG are in the process of issuing 60% right shares to reach Rs 1 arba in paid-up capital. Likewise, UIC had issued 240% right shares and is currently in the process of auctioning the unsold shares. After the allotment, it will also reach the capital mark.

In the case of the three new companies, they are yet to issue Initial Public Offering (IPO). RBCL is the only company that hasn't presented any capital plans yet.

*All amounts are in thousands.

Reserves

RBCL, although lowest capital, has the highest amount of reserves. As of the first quarter of 2076/77, its reserve stood at Rs 2.49 arba. The industry average is Rs 35.42 crore and 5 companies are above the industry average. UIC along with the three new companies have the least amount of reserves.

*All amounts are in thousands.

Insurance Fund

The average insurance fund of the non-life insurance industry stands at Rs 52.46 crore.

RBCL again has the highest amount at Rs 1.77 arba, followed by SICL at Rs 1.11 arba. A total of 8 companies are above industry average, while the remaining are below average.

The three new companies have the lowest insurance fund, preceded by EIC at Rs 23.73 crore.

*All amounts are in thousands.

Net premium

The non-life insurance companies, in total, have collected Rs 3.16 arba as net premium by selling insurance policies. Similarly, the industry average stands at Rs 17.6 crore.

SICL has the highest net premium of Rs 45.83 crore followed by NIL at Rs 33.13 crore. Similarly, 5 other companies have net premium above the industry average.

Similarly, on the lower end, the three new companies were accompanied by HGI at just Rs 7.78 crore.

*All amounts are in thousands.

Net profit

The net profit of non-life insurance companies till the first quarter of FY 2076/77 stood at Rs 73.86 crore, whereas the average net profit stood at Rs 4.10 crore.

SICL has reported the highest net profit of Rs 12.14 crore and the lowest net profit among the listed companies belongs to UIC followed by the three non-listed companies.

*All amounts are in thousands.

Number of policies

SICL has issued the highest number of policies among all the non-life insurance companies standing at 94,705 followed by NIL and PIC at 68,455 and 49,433 respectively.

The industry floated 33,652 policies on average.

Networth

The net worth of all the general insurance companies is above the par of Rs 100. Beating everyone, RBCL has the highest net worth per share of Rs 1699.

Apart from the three new companies, EIC has the lowest net worth per share of Rs 135.47.

Earnings per share (EPS)

RBCL, again, has reported the highest EPS which can be attributed to its low paid-up capital. Among the others, SICL has an EPS of Rs 45.93.

On the lower end, the three new companies AJOD, SAICL and GICNL, have EPS of Rs 1.11, Rs 1.07 and Rs 0.83 respectively.

Price-Earnings ratio (PE ratio):

The industry average PE ratio stands at 25.06 times. NICL reports the lowest PE ratio at 13.84 times, while RBCL reports the highest PE Ratio at 92.01 times.

Overall