Unveiling Q4 2080/81: A Comprehensive Analysis of Leading Non-Life Insurance Companies and Key Financial Insights

Twelve non-life insurance companies have unveiled their audited results for the fourth quarter of FY 2081/82, reflecting a year marked by varied growth patterns and strategic shifts.

The reports provide a comprehensive view of the sector’s financial health, highlighting profitability, capital adequacy, and underwriting performance. These figures not only indicate how individual players have fared but also reveal broader trends shaping the competitive landscape of Nepal’s insurance market. This analysis delves into key indicators such as earnings, reserve positions, and overall market dynamics, offering an informed outlook for stakeholders and investors.

Net Profit:

In Q4 FY 2081/82, Siddhartha Premier Insurance (SPIL) led with a net profit of Rs. 71.32 Crores, marking a 3.63% increase over the same period last year. Neco Insurance Limited (NIL) followed with a net profit of Rs. 55.08 Crores, though this represents a 6.72% decrease from the previous year. 

Prabhu Insurance Company Limited (PRIN) recorded the highest growth, a staggering 39.24% rise, while Rastriya Beema Company Limited (RBCL) saw the largest decline at 31.83%.

Paid-Up Capital:

IGI Prudential Insurance (IGI) holds the highest paid-up capital at Rs. 3.03 Arba, followed by Shikhar Insurance Company (SICL) at Rs. 2.92 Arba, and Siddhartha Premier Insurance (SPIL) with Rs. 2.81 Arba. Rastriya Beema Company Limited (RBCL) has the lowest paid-up capital at Rs. 27 Crores.

Reserve and Surplus:

The combined reserve and surplus of all non-life insurance companies totaled Rs. 25.16 Arba, with the industry average standing at Rs. 2.10 Arba. Rastriya Beema Company Limited (RBCL) led with Rs. 13.87 Arba, followed by Siddhartha Premier Insurance (SPIL) at Rs. 2.40 Arba and Nepal Insurance Company Limited (NICL) with Rs. 1.77 Arba.

Gross Insurance Contract Liabilities:

Collectively, non-life insurance companies gathered Rs. 48.60 Arba in gross insurance contract liabilities, with five companies surpassing this average.

Sagarmatha Lumbini Insurance Company (SALICO) led at Rs. 6.89 Arba, followed by Shikhar Insurance Company Limited (SICL) at Rs. 6.51 Kharba. United Ajod Insurance Limited (UAIL) recorded the unexpired contract liabilities fund collection at Rs. 2.02 Arba.

Investments:

Rastriya Beema Company Limited (RBCL) topped the list in investments with Rs. 18.44 Arba, followed by Siddhartha Premier Insurance (SPIL) with Rs. 9 Arba.

Meanwhile, Prabhu Insurance Company (PRIN) had the smallest investment portfolio at Rs. 1.43 Arba.

Net Premium:

Net premium, reflecting the core company's earnings, saw Sagarmatha Lumbini Insurance Company (SALICO) leading at Rs. 2.11 Arba, closely followed by Siddhartha Premier Insurance (SPIL) at Rs. 2.06 Arba.

Income from Investments, Loans & Others:

Rastriya Beema Company Limited (RBCL) has reported the highest income from investments, loans & others of Rs. 59 Crores. Siddhartha Premier Insurance (SPIL) has reported an income from investments of Rs. 48 Crores, making it the second-highest.

Prabhu Insurance Company (PRIN) recorded the lowest earnings from investments, loans & others collection at Rs. 11 Crores.

Net Claims Paid:

Sagarmatha Lumbini Insurance Company (SALICO) holds the highest amount of net claim payment in this quarter, which amounts to Rs. 1.69 Arba. This is followed by Siddhartha Premier Insurance (SPIL), which has a net claim payment of Rs. 1.13 Arba.

Total Inforce Policy Count:

Among the non-life insurance companies, SICL is leading the chart with 3.09 lakh policies. Whereas, PRIN has the lowest total in-force policy count of 2.99 lakh.  

Major Indicators:

Earnings Per Share (EPS):

Rastriya Beema Company Limited (RBCL) posted the highest EPS at Rs. 160.38, followed by Siddhartha Premier Insurance (SPIL) at Rs. 25.41 and Neco Insurance Limited (NIL) at Rs. 21.90.

The industry average EPS was Rs. 27.94. NLG Insurance Company Limited (NLG) had the lowest EPS at Rs. 6.28. 

Net Worth Per Share:

Rastriya Beema Company Limited (RBCL) reported the highest net worth per share at Rs. 6,489.08, followed by Siddhartha Premier Insurance (SPIL) at Rs. 274.56 and Neco Insurance Limited (NIL) at Rs. 245.55. Sanima GIC Insurance Limited (SGIC) recorded the lowest net worth per share at Rs. 152.12, while the industry average stood at Rs. 732.26.

P/E Ratio:

Himalayan Everest Insurance Limited (HEI) had the lowest P/E ratio at 28.95 times, followed by Neco Insurance Limited (NIL) at 32.44 times. This reflects quarter-end ratios, and current ratios may vary with recent stock prices.

The table below provides a detailed overview of these financial indicators across the 12 non-life insurance companies for Q4 FY 2081/82.

**Note: All figures are reported in Arba except for net profit, which is presented in crores for clarity.