नेपाल पुनर्बीमा कम्पनीको तेस्रो त्रैमासिक वित्तीय नतिजा सार्वजनिकNepal Reinsurance Company's Third Quarter Financial Results Published

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Particulars At the end of this Quarter (Unaudited) At the end of Immediate Previous Year (Unaudited)

Assets:

Investment Properties - -

Deferred Tax Assets 182,811,533 169,983,051

Investment in Subsidiaries - -

Investment in Associates - -

Equity:

Share Capital 13,422,187,078 13,422,187,078

Share Application Money Pending Allotment - -

Share Premium - -

Liabilities:

Deferred Tax Liabilities - -

Insurance Payable 1,701,690,221 2,366,612,111

Current Tax Liabilities (Net) - -

Borrowings - -

OTHER DETAILS

Particulars Current Year Upto this Quarter Previous Year Upto this Quarter (YTD)

Note:

1. Above interim financial statement has comply with the requirements of Nepal Accounting Standard - 34 "Interim Financial Reporting" wherever applicable including directives issued by Nepal Beema Pradhikaran.

2. Detailed interim report has been published in our website (www.nepalre.com.np).

3. Above financial statements includes provisional figures based on latest data and information received by the company as Statement of Accounts(SOA) are still pending.

Disclosure as per Section 84(3) of Insurance Act, 2079

1. Solvency Ratio related disclosure:

As per latest audited financial statements of the company, the solvency ratio as on Ashad end, 2080 is 3.65, which is higher than the regulatory requirement i.e. 1.5 times.

2. Reinsurance related disclosure:

The company has arranged for adequate and appropriate retrocession program based on the directives issued by the Nepal Insurance Authority and strategy of the company.

3. Details regarding legal proceeding:

There are a few numbers of legal proceedings from the company against tax assessment of previous fiscal years from the Large Taxpayer's Office.

4. Corporate Governance:

The company is conducting its activities in accordance with the provision of Insurance Act, Insurance Regulation, Directives and Circulars issued by Nepal Insurance Authority, the internal control mechanism of the company and following the suggestions received from the internal and external auditor of the company and Nepal Insurance Authority.

5. Any other disclosure as deemed relevant

None

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Particulars Current Year Upto this Quarter Current Year Upto this Quarter (YTD) Corresponding Previous Year Upto this Quarter Corresponding Previous Year Upto this Quarter (YTD)

Income:

Commission Income - - - -

Net Gain/(Loss) on Fair Value Changes - - - -

Net Realised Gains/(Losses) - - - -

Expenses:

Impairment Losses - - - -

Share of Net Profit of Associates accounted using Equity Method - - - -

1. Financial Statements Quarter - III (FY 2082/83)

A. Quarterly Statement of Financial Position and Statement of Profit or Loss

The quarterly financial statements for third quarter have been published along with this report. The financial statement has been prepared in compliance with Nepal Accounting Standard - 34 "Interim Financial Reporting" and Nepal Financial Reporting Standards (NFRS) issued by the Nepal Accounting Standards Board (ASB) and directives and circulars issued by Nepal Insurance Authority and required disclosures as per Securities Board of Nepal. The previous period figures have been regrouped and adjusted wherever required.

B. Major Financial Ratios

Particulars Current Year Previous Year

Earning Per Share (43.51) 109.20

Net worth per share (Rs.) - -

P/E Ratio (30.13) 294.55

Total Assets per share (Rs.) - -

2. Management Analysis:

Company has been able to position itself as preferred reinsurer within the country and also has been able to demonstrate itself as trustworthy reinsurer among international brokers and reinsurer. In the current quarter investment return of the company is affected due to decrease in the interest rate offered by the bank and financial institutions. As an investment diversification objective company has plan to increase its investment in alternatives as per Nepal Insurance Authority directive. The decrease in economic activity within the country and economic stress scenario worldwide has affected the growth of the insurance industry.

3. Details regarding legal proceedings:

There are a few numbers of legal proceedings from the company against tax assessment of previous fiscal years from the Large Taxpayer's Office.

4. Analysis of company's share transactions

Maximum share price: NPR 1352

Total number of transactions: 38,341.00

Minimum share price: NPR 950

Total number of shares traded: 4,312,083.00

Closing share price: NPR 1014.7

Total number of transaction days: 53 Days

*Source: As published in the website of Nepal Stock Exchange (www.nepalstock.com.np)

5. Problems and Challenges

a. Lack of growth of industrial activities.

b. Fluctuations in the interest rate offered by the bank and financial institutions.

c. Impact of CAT risk and its upcoming exposure.

d. Shortage of technical and dedicated manpower in the insurance industry.

e. Unstable political environment of the country.

f. Delay in receiving Statement of Accounts (SOAs) from cedent companies.

6. Strategies initiated by Management to solve the problems and challenges:

a. Diversification of investment in alternatives as per Nepal Insurance Authority Directive.

b. Establish and cause to arrange insurance pools for management of reinsurance and claim payment of various risk exposure.

c. Obtaining appropriate reinsurance arrangement for covering the risk exposure.

d. Continuous Training and Development activities for the development of human resource.

e. Providing appropriate reinsurance coverage to national insurance companies to carter their reinsurance needs.

f. Enhancing public relation with the market and cedent companies.

7. Corporate Governance

The company is conducting its activities in accordance with the provision of Insurance Act, Insurance Regulation, Directives and Circulars issued by Nepal Insurance Authority, the internal control mechanism of the company and following the suggestions received from the internal and external auditor of the company and Nepal Insurance Authority.

8. Declaration by Chief Executive Officer on truthfulness of information

I, hereby, declare that all the information provided in this document is true, complete and factual and that I take personal responsibility for any deviations thereof. I also declare that the Company's information or data, that assist investors in making informed investment decisions, have not been misstated in any way.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Particulars Current Year Upto this Quarter Current Year Upto this Quarter (YTD) Corresponding Previous Year Upto this Quarter Corresponding Previous Year Upto this Quarter (YTD)