रिलायबल नेपाल लाइफ इन्स्योरेन्सको चौथो त्रैमासिक वित्तीय विवरणReliable Nepal Life Insurance: Q4 Financial Results

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

1. The company has maintained solvency ratio of 2.54 for the Fiscal Year 2081/82. (Approved by Nepal Insurance Authority)

2. The company has made adequate reinsurance arrangement to cover the risk from the class of its business.

3. There is no any legal proceeding by or against the company.

4. The company has complied with the corporate governance Directive issued by Nepal Insurance Authority.

5. The expense of company is within the expense ratio prescribed by Nepal Insurance Authority.

Disclosure as required by Securities Registration and Issue Regulations, 2073 (Related to sub-rule (1) of Rule 26

1. Financial Statements

a) Statements related to Financial Position and Profit or Loss have been published along with this.

Transactions with related parties:

a. Group comprises of Reliable Nepal Life Insurance Ltd. (Company), Reliable Investment and Merchant Capital Ltd. (Subsidiary) and Reliable Management Company Limited (Subsidiary).

b. No intra-group transactions.

b) Key Financial Indicators:

Earnings per Share Rs. 11.21 Market Price per Share Rs. 440

Price Earnings Ratio 39.25 Return on Total Assets 2.18%

Net Worth per Share Rs. 148.49 Total Assets per share 514.84

2. Managerial Analysis

a) Details relating to the change in the Company's Premium, income and liquidity in the quarter and its main reason: Company has been able to earn Net Profits of Rs. 58.26 crores. There are 317 outstanding claims which are on the process of decision. Investment has increase by 25.17% which indicated for sustainability of the company.

b) Management's analytical details regarding future business plan: Considering the prevailing financial constraints in the Nepalese financial market, particularly limited investment avenues and declining interest rates, management expresses satisfaction with the Company's current financial performance.

c) Analytical details of the incidents that may have major impact on reserves, profit or cash flow (if any), based on previous experience: Current adverse economic situation has had adverse effect on new business growth however increase in investment portfolio will help for profitability.

3. Statement related to legal proceedings:

a) Case filed by or against the Company in this quarter:

There have been no legal cases except the cases which are related to dispute of claim and fraudulent by the employee.

b) Case relating to disobedience of prevailing law or commission of criminal offence filed by or against the promoter or director of the Company:

No such information has been received.

c) Case relating to commission of financial crime filed against any promoter or director of the Company:

No such information has been received.

4. Statements related to Share Transactions:

a) Management view on the transactions of the shares of the Company in the share market:

Compared to the previous fiscal year, where 3,479,401 share transactions were recorded up to the fourth quarter, the current fiscal year has recorded 932,515 share transactions during the same period, indicating increased and positive market participation. Hence, management has positive opinion regarding the share price movements.

b) Maximum, minimum and closing share price, total transaction days and total transacted number of shares in the quarter:

Maximum Price (Rs.) 483 Minimum Price (Rs.) 436

Closing Price (Rs.) 440 Total Transaction Days 64

No. of Share Transactions 932515

5. Problems and Challenges:

Internal Problems and Challenges:

• Challenge to manage Operational Risk with the increase in business volume

• Challenge of Human Resources

• Limitation of Investment scope

• Other additional Claim Liabilities due to Disaster.

External Problems and Challenges:

• Cut throat completion between Life insurance Companies

• Interest rate risk

• Reduce income level of general people.

• Unstable Political scenario

Company's Strategy to mitigate problems and challenges:

• Expanding business activities with caution observing the changes in internal and external environment

• Providing trainings to staff to enhance skills and abilities

• Introducing new products and services considering the interest of the customers

• Effective risk management, monitoring and controlling on various risk

6. Corporate Governance

Quarterly Financial Results for Fourth Quarter, F.Y. 2080/81 B.S.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Fig. in NPR

Particulars Group Unaudited At the end of this Quarter Group Audited At the end of Immediate Previous Year Insurance Unaudited At the end of this Quarter Insurance Audited At the end of Immediate Previous Year

Assets:
Goodwill & Intangible Assets	4,250,228	2,777,302	4,042,184	2,490,160
Property and Equipment	265,177,385	228,071,144	260,581,748	222,393,176
Investment Properties	-	-	-	-
Deferred Tax Assets	-	-	-	-
Investment in Subsidiaries	-	-	404,000,000	200,000,000
Investment in Associates	-	-	-	-
Investments	24,471,034,627	19,521,018,080	24,074,889,725	19,340,199,589
Loans	711,117,321	584,444,087	711,117,321	584,444,087
Reinsurance Assets	44,516,701	25,801,881	44,516,701	25,801,881
Current Tax Assets	470,944,027	385,524,481	470,766,955	382,181,207
Insurance Receivables	21,874,451	38,823,116	21,874,451	38,823,116
Other Assets	38,535,665	419,616,499	38,249,895	419,006,729
Other Financial Assets	419,700,507	322,341,950	411,392,620	312,888,609
Cash and Cash Equivalent	380,568,632	527,188,181	313,864,323	514,873,524
Total Assets	26,827,719,544	22,055,606,722	26,755,295,923	22,043,102,078
Equity:
Share Capital	5,196,800,000	5,196,800,000	5,196,800,000	5,196,800,000
Share Application Money Pending Allotment	-	-	-	-
Share Premium	1,391,637,455	1,391,637,455	1,391,637,455	1,391,637,455
Catastrophe Reserves	287,401,643	229,792,290	287,401,643	229,792,290
Retained Earnings	824,502,900	892,032,764	813,439,026	887,989,302
Other Equity	29,410,773	42,777,586	27,382,494	40,463,761
Total Equity	7,729,752,770	7,753,040,095	7,716,660,617	7,746,682,808
Liabilities:
Provisions	48,158,235	62,757,348	48,158,235	62,757,348
Gross Insurance Contract Liabilities	17,939,475,211	13,591,353,273	17,939,475,211	13,591,353,273
Deferred Tax Liabilities	36,134,210	41,404,032	36,134,210	42,643,558
Insurance Payable	-	19,286,072	-	19,286,072
Current Tax Liabilities	-	-	-	-
Borrowings	-	-	-	-
Other Liabilities	51,795,692	115,845,627	51,360,252	115,756,114
Other Financial Liabilities	1,022,403,426	471,920,275	963,507,397	464,622,905
Total Liabilities	19,097,966,774	14,302,566,627	19,038,635,305	14,296,419,269
Total Equity and Liabilities	26,827,719,544	22,055,606,722	26,755,295,923	22,043,102,078

OTHER INDICATORS

Particulars	Current Year Upto this Quarter (YTD)	Previous Year Upto this Quarter (YTD)
1. Total inforce Policies count	2,605,843	2,494,819
2. Total number of policies issued during the period	311,024	328,800
3. First Year Premium (including Single Premium)	2,932,368,096	2,235,528,998
4. Single Premium	590,667,012	408,324,268
5. Renewal Premium	3,701,829,323	3,164,432,550
6. Total Benefits and Claims Paid in Count	14,736	16,276

7. Outstanding Benefits and Claims in Count 317 276

8. Gross Claim Outstanding (Amount) 76,870,968 30,497,553