Will insurance companies make stability in current EPS after capital increment? NLG, LGIL & 4 others EPS stands above Rs 30 in Q4
Wed, Aug 16, 2017 7:00 AM on Latest, Exclusive, Financial Analysis, Featured, Stock Market,
The growing trend of securing property from individuals by transferring risk to the third party, i.e. to the insurance companies massively increased after occurrence of shocking earthquake in 2072, floods, landslides, etc. Furthermore, to diminish the risk from various accidents and unfortunate events as well, people approaches to the insurance companies, this is the main factors behind the growth of non-life insurance companies in Nepal.
Major companies like Everest Insurance Company Limited (EIC), NLG Insurance Company Limited (NLG), Lumbini General Insurance Limited (LGIL), Himalayan General Insurance Limited (HGI), Prudential Insurance Company Limited (PICL) and NB Insurance Limited (NBIL) have published their fourth quarter report of the FY 2073/74.
As per the unaudited report published by above mentioned 6 companies today, we have analyzed the major indicators of those companies which clearly spells out their performance and know their growth without any effort.
The below table consists of major fundamental factors:
From the above table, EIC’s succeed to increase its insurance fund by hefty 211.70% to Rs 15.23 crore from Rs 4.88 crore, where its net profit increases by 62.12% to Rs 4.55 crore. Its EPS stands at Rs 37.52, net worth per share stands at Rs 381.53 and P/E ratio at 65.30 times. EIC has recently endorsed 20% bonus shares and 600% right shares from the profit it had earned in the previous FY.
NLG’s average performance in all fundamentals in Q4 of 2073/74 makes the company better than pervious Q4 of 2072/73. Its net insurance premium has been increased by 31.88% to Rs 81.76 crore with net profit of Rs 24.38 crore. NLG’s EPS declined to Rs 47.59 from Rs 56, net worth per share stands at Rs 252.54 and P/E ratio is 31.24 times.
LGIL’s whose 100% right is ongoing reports 103.06% rise in reserves to Rs 18.81 crore by making profit of Rs 19.09 crore from Rs 15.17 crore. Its EPS stands at Rs 48.97, net worth per share at Rs 238.44 and P/E ratio is only 18.99 times.
HGI’s whose 166.67% right shares is also ongoing stated decline in EPS by 15.95% to Rs 34.27 from Rs 40.77, net worth per share stands at Rs 217.16 and P/E ratio at 21.74 times. Its net profit amounts to Rs 13.19 crore from Rs 13.08 crore. Insurance fund rises by 24.94% to Rs 33.05 crore.
PICL which recently applied for the approval to issue 30% right shares from SEBON, states Rs 17.13 crore as net profit. It reserve hikes by 112.50% from Rs 16.15 crore to Rs 34.32 crore. Its EPS stands at Rs 40.06, net worth per share at Rs 282.82 and P/E ratio at Rs 35.20 times.
Lastly, NBIL’s which had issued 100% right shares has shown outstanding growth of 131.54% net profit to Rs 10.09 crore from Rs 4.36 crore. Its number of insurance policies also increased to 56,119 from 24,114. Its EPS reached to Rs 37.39 from Rs 17.8 by making rise of 110.03%, net worth per share stands at Rs 172.57 and P/E ratio at 26.87 times.
As per the Insurance Board of Nepal, it is mandatory for all the non-life insurance companies to hike their capital to Rs 1 arba within the end of Ashad 2075. Most of the companies have already submitted their capital increment plan.
Investors need to cautious with mentioned paid up capital and EPS of LGIL, HGI and NBIL as all three companies have issued right shares in huge percentage which may lead to decline in EPS and net worth per share in the upcoming quarterly report. LGIL has issued 100
See the capital increment plan as submitted by insurance companies to the Insurance Board of Nepal from our previous exclusive news.
From the above table, EIC’s succeed to increase its insurance fund by hefty 211.70% to Rs 15.23 crore from Rs 4.88 crore, where its net profit increases by 62.12% to Rs 4.55 crore. Its EPS stands at Rs 37.52, net worth per share stands at Rs 381.53 and P/E ratio at 65.30 times. EIC has recently endorsed 20% bonus shares and 600% right shares from the profit it had earned in the previous FY.
NLG’s average performance in all fundamentals in Q4 of 2073/74 makes the company better than pervious Q4 of 2072/73. Its net insurance premium has been increased by 31.88% to Rs 81.76 crore with net profit of Rs 24.38 crore. NLG’s EPS declined to Rs 47.59 from Rs 56, net worth per share stands at Rs 252.54 and P/E ratio is 31.24 times.
LGIL’s whose 100% right is ongoing reports 103.06% rise in reserves to Rs 18.81 crore by making profit of Rs 19.09 crore from Rs 15.17 crore. Its EPS stands at Rs 48.97, net worth per share at Rs 238.44 and P/E ratio is only 18.99 times.
HGI’s whose 166.67% right shares is also ongoing stated decline in EPS by 15.95% to Rs 34.27 from Rs 40.77, net worth per share stands at Rs 217.16 and P/E ratio at 21.74 times. Its net profit amounts to Rs 13.19 crore from Rs 13.08 crore. Insurance fund rises by 24.94% to Rs 33.05 crore.
PICL which recently applied for the approval to issue 30% right shares from SEBON, states Rs 17.13 crore as net profit. It reserve hikes by 112.50% from Rs 16.15 crore to Rs 34.32 crore. Its EPS stands at Rs 40.06, net worth per share at Rs 282.82 and P/E ratio at Rs 35.20 times.
Lastly, NBIL’s which had issued 100% right shares has shown outstanding growth of 131.54% net profit to Rs 10.09 crore from Rs 4.36 crore. Its number of insurance policies also increased to 56,119 from 24,114. Its EPS reached to Rs 37.39 from Rs 17.8 by making rise of 110.03%, net worth per share stands at Rs 172.57 and P/E ratio at 26.87 times.
As per the Insurance Board of Nepal, it is mandatory for all the non-life insurance companies to hike their capital to Rs 1 arba within the end of Ashad 2075. Most of the companies have already submitted their capital increment plan.
Investors need to cautious with mentioned paid up capital and EPS of LGIL, HGI and NBIL as all three companies have issued right shares in huge percentage which may lead to decline in EPS and net worth per share in the upcoming quarterly report. LGIL has issued 100
See the capital increment plan as submitted by insurance companies to the Insurance Board of Nepal from our previous exclusive news.
- Sijan Bajracharya
