Among 19 life insurance companies, 8 of the insurance companies of Nepal are taken into consideration, namely Asian Life Insurance Company Limited (ALICL), Guras Life Insurance Company Limited (GLICL), Life Insurance Corporation Nepal (LICN), Nepal Life Insurance Company Limited (NLIC), National Life Insurance Company Limited (NLICL), Surya Life Insurance Company Limited (SLICL), Prime Life Insurance Company Limited (PLIC) and Rastriya Beema Sansthan (RBS). The below table includes important fundamentals data of the first quarter of the FY 2074/75 and FY 2073/74 that must be consider while analyzing:
Summarizations:
- Highest paid up capital = NLIC with Rs 3.09 arba
- Lowest paid up capital = RBS with Rs 18.10 crore
- Highest reserve fund = NLIC with Rs 4.86 arba
- Lowest reserve fund = RBS with Rs 15.44 crore
- Highest Insurance Fund =NLIC with Rs 43.36 arba
- Lowest Insurance Fund= SLICL with Rs 2.71 arba
- Highest Policies = NLIC with 10.94 lakh
- Lowest Policies = GLICL with 1.80 lakh
- Highest EPS = SLICL with Rs 31.82
- Lowest EPS = ALICL with Rs 7.85
- Highest net worth per share = NLIC with Rs 265.72
- Lowest net worth per share = NLICL with Rs 127.68
- Highest P/E ratio = ALICL with 179.71 times
- Lowest P/E ratio = SLICL with 30.48 times
Notes:
- Amount of paid up capital, reserve fund, insurance fund, contingent fund, net premium, net claim paid, net profit and claim outstanding are in Rs. crore. Annualized Earning per Share (EPS), net worth per share and LTP (Last Traded Price as on Mangsir 4, 2074) is in Rs. P/E ratio is in times.
- Annualized EPS = (Net profit divided by no of shares) times 4
- Net Worth = Sum of Paid up capital, Reserve Fund and Contingent Fund divided by No of shares
- P/E Ratio = LTP divided by Annualized EPS
Recommendation: Better to save screenshot of above table for further use.
Among the new entrants life insurance companies only Sun Nepal Life Insurance, Reliance Life Insurance, IME Life Insurance, Jyoti Life Insurance and Union Life Insurance have started their operations; whereas, Citizen Life Insurance, Star Life Insurance, Sanima Life Insurance got the license but not yet started their business so far. Mahalaxmi Life Insurance license is on pending stage at the Insurance Board.
Among the old players Met Life American Life Insurance Company limited (Alico) and Ratriya Beema Sansthan (RBS) is yet to issue IPO to the public to get listed in the NEPSE.
