The general insurance sector of Nepal comprises of 20 companies in total. The 15 companies are listed in Nepal Stock Exchange (NEPSE). Likewise, Ajod Insurance, General Insurance Company, and Sanima General Insurance are newly licensed companies who haven't issue Initial Public Offering (IPO) yet.
IPO of AJOD has been added in the SEBON pipeline to issue a total of 30 lakh units. GICNL is also on the process of issuing IPO worth Rs 30 crore. It has appointed NIBL Ace as the issue manager but the issue hasn't been added to the SEBON pipeline yet. SIACL is also on the process of bringing IPO.
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. Also, have not published their Q3 report yet.
The regulator of the insurance industry, Beema Samiti, has set the minimum paid-up capital requirement at Rs 1 arba.
As you can see the list, 12 companies have met their capital mark and 7 are yet to meet. Similarly, after the IPO of AJOD, GICNL and SAICL, each of their paid-up capital will also meet the capital mark. Also, NLG and PICL, both companies 60% right share book closure has already happened. Soon, after the Covid 19 normal market conditions, both these companies will also meet Rs 1 arba mark. It is the RBCL, who has the least paid up capital among listed non-life insurance companies.
Reserves and Surplus
The reserve and surplus has an outlier at the upper end. RBCL has the highest reserves of Rs 2.91 arba which also impacts the industry average figure.
Following RBCL, SICL has the highest reserves of Rs 63.73 crore. Similarly, the three non-listed companies have the lowest reserves.
RBCL and SICL has the highest insurance fund of Rs 2.19 arba and Rs 1.23 arba respectively. The industry average insurance fund stands at Rs 56.08 crore. The non-listed insurance companies have managed to secure an insurance fund of more than Rs 4 crore.
Net premium is the main source of earning for insurance companies. The average net earnings from premium stood at Rs 44.65 crore till Q3 of 2077/78.
SICL reported the highest earning of Rs 1.21 arba followed by NIL at Rs 92.89 crore. RBCL despite high reserves and insurance fund has the lowest (among listed companies) net premium collection of Rs 17.48 crore.
RBCL posted the highest net profit of Rs 53.44 crore till Q3 of 2077/78. The second highest profit of Rs 36.05 crore was of SICL. The industry average net profit stands at Rs 15.59 crore.
Number of policies
The 18 non-life insurance companies have a total of 16.51 lakh insurance policies currently in force. The average number of policies stands at 91,727. SICL and NIL ranked highest whereas SAICL and RBCL are on the lower positions.
Net worth per share
RBCL has the highest net worth per share of Rs 2018.02 per share given its low capital base. NLG has the second-highest net worth. The industry average net worth per share stands at Rs 281.97 per share.
The highest annualized EPS has been reported by RBCL at Rs 267.22 followed by SICL at Rs 45.46. The lowest annualized EPS was reported by SAICL at Rs 5.51 per share. And among the listed companies of UIC at Rs 5.53 per share.
The industry average PE ratio stands at 20.36 times. The lowest PE ratio was reported by NLG at 16.63 times followed by PRIN at 17.82 times. AJOD, GICNL and SAICL haven't been listed yet and therefore doesn't have PE ratio.