Slow business growth and high provision and claim payments result 20.47% fall in net profit of Sagarmatha Insurance
Tue, Aug 20, 2019 8:29 AM on Financial Analysis, Stock Market, Latest,
Sagarmatha Insurance Company Limited (SIC) net profit has decline by 20.47% in the fourth quarter of the last fiscal year 2075/76. The company earnings have decreased from Rs 34.77 crore to Rs 27.65 crore in Q4 of the FY 2075/76.
As per the unaudited report for the fourth quarter published today, SIC has a paid up capital of Rs 1 arba with a reserve and surplus of Rs 34.32 crore. It has Rs 48.87 crore in insurance fund and Rs 8.07 crore in contingent fund.
The net earnings from premium rose by 17.27% to Rs 1.01 arba till Q4 of FY 75/76 from Rs 86.48 crore in the corresponding quarter of last fiscal year. The company has earned Rs 8.93 crore from investment, loans and others headings and its reinsurance income stands at Rs 31.86 crore.
The company net claim payment rises by 24.78% to Rs 55.39 crore and its pending claim amount stands at Rs 85.72 crore for which company has made provisions of Rs 35.37 crore till Q4.
The company’s number of policyholders increased from 99,169 in the corresponding quarter to 1,49,692 in Q4.
It's EPS and net worth per share stands at Rs 27.62 and Rs 191.17. The quarter end P/E ratio of the company according to the report is at 21.90 times.
Major Highlights:
|
Particulars (In Rs '000) |
Sagarmatha Insurance |
||
|---|---|---|---|
|
Q4 2075/76 |
Q4 2074/75 |
Difference |
|
|
Paid Up Capital |
1,001,223 |
538,292 |
86.00% |
|
Reserve and Surplus |
343,253 |
529,752 |
-35.20% |
|
Insurance Fund |
488,791 |
488,791 |
0.00% |
|
Contingent Reserve |
80,770 |
80,770 |
0.00% |
|
Gross Premium |
2,179,227 |
1,838,012 |
18.56% |
|
Net Premium |
1,014,166 |
864,815 |
17.27% |
|
Re-Insurance Income |
318,652 |
298,749 |
6.66% |
|
Income from Investment, Loan and others |
89,368 |
74,848 |
19.40% |
|
Claim Payment (Net) |
553,958 |
443,953 |
24.78% |
|
Pending Claims (Gross) |
857,261 |
376,463 |
56.08% |
|
Agent Commission |
44,468 |
42,743 |
4.04% |
|
Gross Profit |
344,313 |
504,830 |
-31.80% |
|
Net Profit |
276,578 |
347,768 |
-20.47% |
|
No of Policies |
149,692 |
99,169 |
50.95% |
|
EPS (In Rs.) |
27.62 |
64.61 |
-57.24% |
|
Net Worth per Share (In Rs.) |
191.17 |
304.22 |
-37.16% |
|
Qtr End PE Ratio |
21.90 |
- |
- |
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