State of non- life insurance companies; Net profit decreases by 8%, Reserve increases by 36% & 35% increase in long term investment
This study analyzes 15 listed non life insurance companies namely Himalayan General Insurance Company Limited (HGI), United Insurance Company (Nepal) Limited (UIC), Premier Insurance Company (Nepal) Limited (PIC), Neco Insurance Limited (NIL), Sagarmatha Insurance Company Limited (SIC), Prabhu Insurance Company Limited (PRIN), Prudential Insurance Company Limited (PICL), Shikhar Insurance Company Limited (SICL), Lumbini General Insurance Company Limited (LGIL), NLG Insurance Company Limited (NLG), Siddartha Insurance Limited (SIL), and Rastriya Beema Company Limited (RBCL), NB Insurance Company Limited (NBIL), Nepal Insurance Company Limited (NICL) and Everest Insurance Company Limited (EIC).
This study compares the indicators of non life insurance companies from Q2 of current fiscal year to the Q2 of the last fiscal year. Let’s see some of the fundamentals in non Life insurance from microscopic view:
Paid up Capital
The average paid up capital of non life insurance in our study has increased by 26%. NLG insurance has the highest paid up capital. UIC has highest percentage change in terms of paid up capital which increased by 150%. RBCL has lowest paid up capital as the company has not declare stock dividend or right shares form the past few year.
Reserve
Average reserve of non - Life Insurance Company has increased by 36%. The study in this report shows that RBCL has above 42% of total reserve among 15 non life insurance companies. SICL has highest percentage change in reserve which rises by 267% (SICL has issued FPO @ 650). PIC and PICL has increased its reserve by more than 100%. Reserve of SIC has depreciated by 26% in Q2 compare to last corresponding quarter.
Insurance Fund
The average insurance fund of non life insurance has increased by 45%. There is no change in Insurance fund of EIC. NBIL has increased its insurance fund by 144 %. RBCL has managed the highest insurance fund and also has increased its insurance fund by 58 %.
Long Term Investment
The RBCL has decreased its long term investment by 45%. NBIL manage to increase its long term investment. The average long term investment has increased by 35%. Overall non life insurance long term investment shows an increasing trend.
Net Profit
Average net profit of non life insurance has decreased by 8%. The net profit of SIC has decreased by 58% as SIC has the biggest number of claims filed after of earthquake. NBIL has managed to increase its net profit while the net profit of RBCL has decreased by 46%. The average net profit of non-life insurance has dwindled resulting higher number of claims after earthquake.
No of Policies
The average number of policies holder has increased smoothly. SICL has highest number of policies holder. LGIL, SIL, PICL, PRIN, NICL and SIC number of policy holders decreased in the current fiscal year. As many people expected to insure their properties after the earthquake, the number of policies will rise in upcoming quarter.
Net Worth
RBCL has the highest net worth per share of Rs 2218.19 which represents increment by 32% as compared to the last corresponding quarter. The average net worth per share of non life insurance company has surged by 15%. Net worth of UIC, SIC, NBIL and NIl has decreased.
Earnings Per Share
The average Earning per Share (EPS) of non life insurance is RS 35.85 which is decrease of 29% as compared to the last corresponding quarter. SIC earnings per share has decline by 63%. UIC, SIC, PICL, NIL, HGI, RBCL have negative EPS.
The average paid up capital of non life insurance in our study has increased by 26%. NLG insurance has the highest paid up capital. UIC has highest percentage change in terms of paid up capital which increased by 150%. RBCL has lowest paid up capital as the company has not declare stock dividend or right shares form the past few year.
Reserve
Average reserve of non - Life Insurance Company has increased by 36%. The study in this report shows that RBCL has above 42% of total reserve among 15 non life insurance companies. SICL has highest percentage change in reserve which rises by 267% (SICL has issued FPO @ 650). PIC and PICL has increased its reserve by more than 100%. Reserve of SIC has depreciated by 26% in Q2 compare to last corresponding quarter.
Insurance Fund
The average insurance fund of non life insurance has increased by 45%. There is no change in Insurance fund of EIC. NBIL has increased its insurance fund by 144 %. RBCL has managed the highest insurance fund and also has increased its insurance fund by 58 %.
Long Term Investment
The RBCL has decreased its long term investment by 45%. NBIL manage to increase its long term investment. The average long term investment has increased by 35%. Overall non life insurance long term investment shows an increasing trend.
Net Profit
Average net profit of non life insurance has decreased by 8%. The net profit of SIC has decreased by 58% as SIC has the biggest number of claims filed after of earthquake. NBIL has managed to increase its net profit while the net profit of RBCL has decreased by 46%. The average net profit of non-life insurance has dwindled resulting higher number of claims after earthquake.
No of Policies
The average number of policies holder has increased smoothly. SICL has highest number of policies holder. LGIL, SIL, PICL, PRIN, NICL and SIC number of policy holders decreased in the current fiscal year. As many people expected to insure their properties after the earthquake, the number of policies will rise in upcoming quarter.
Net Worth
RBCL has the highest net worth per share of Rs 2218.19 which represents increment by 32% as compared to the last corresponding quarter. The average net worth per share of non life insurance company has surged by 15%. Net worth of UIC, SIC, NBIL and NIl has decreased.
Earnings Per Share
The average Earning per Share (EPS) of non life insurance is RS 35.85 which is decrease of 29% as compared to the last corresponding quarter. SIC earnings per share has decline by 63%. UIC, SIC, PICL, NIL, HGI, RBCL have negative EPS.
