Prime Life Insurance net profit decreases to almost half; Asian Life and National Life Insurance’s up 36% and 7% respectively

Prime Life Insurance Company Ltd. (PLIC) has posted a 47% reduction in its net profit as of the second quarter of the ongoing fiscal year 2073/74. As per the unaudited quarterly report published by the life insurance company today, its net profit has reduced to Rs 3.61 crore – down from Rs 6.82 crore in the corresponding quarter last year. It has earned Rs 76.74 crore in net premium earnings and has paid claims of Rs 18.29 crore. With a paid up capital of Rs 48.81 crore (which is below the regulatory requirement of Rs 50 crore), it has a reserve of Rs 73.78 crore and insurance fund of Rs 4.17 arba. It has pending claims of Rs 1.07 crore. As of the end of Q2 this year, its annualized EPS stands at Rs 14.81, net worth at Rs 251.14 and P/E ratio at 114.10 times. It has not been able to hold its AGM for the last three fiscal years (2069/70, 2070/71 and 2071/72) and still has not proposed any dividend for the FY 2072/73. Likewise, Asian Life Insurance Company Ltd. (ALICL) has also not been able to AGM for the FY 2071/72 and has not proposed any dividend for the last FY 2072/73. Its financial performance as of this quarter, however, shows some progress. Its net profit has increased to Rs 2.08 crore from Rs 1.53 crore in the second quarter. It has been able to earn Rs 1.01 arba in net premium from a total of 216,484 insurance policies. Its annualized EPS now stands at Rs 6.21, net worth per share at Rs 143.50 and P/E ratio at 228 times. Similarly, National Life Insurance Company Ltd. (NLICL) has been able to increase its net profit by around 7.3% only. As of the end of Q2 this year, its net profit stands at Rs 8.50 crore, up from Rs 7.92 crore in the corresponding quarter last year. Its earnings from net premium has reached Rs 2 arba, up from Rs 1.45 arba last year. In the same period, it has been able to increase its number of policies from 3,30,908 to 3,58,513. It has pending claims of Rs 10 crore. Its paid up capital stands at Rs 1.32 arba, reserve at Rs 30.93 crore with insurance fund of Rs 15.78 arba. Its EPS stands at Rs 12.83, net worth per share at Rs 129 and P/E ratio at 159 times. National Life Insurance had distributed 30% bonus share for the FY 2071/72. It is issuing 100% right share, for which NIBL Capital Markets was recently appointed as the issue manager.