HEI
Himalayan Everest Insurance Limited (HEI) Posts Strong Q4 Growth with Stable Margins
Himalayan Everest Insurance (HEI) delivered a 42.5% YoY revenue growth in Q4 FY 2024/25, supported by strong underwriting, robust policy renewals, and higher claims settlement. While net profit (Rs. 532.3 million) declined from last year’s peak of Rs. 667.9 million, margins remain solid at nearly 20%. EPS moderated to Rs. 21.29, while book value improved to Rs. 290.00 per share. HEI’s balance sheet strength, large investment portfolio, and consistent policy renewal growth reinforce its stability, though rising claims indicate operational challenges ahead.
Sandeep Chaudhary
1 min read
Himalayan Everest Insurance Limited (HEI) has published its audited financial results for Q4 FY 2024/25, showing strong top-line growth and improved operational efficiency, though profitability remains lower compared to the previous year’s exceptional results.
The company recorded total revenue of Rs. 2.68 billion, marking a 42.51% year-over-year increase compared to Rs. 2.07 billion in Q4 2023/24. Sequential growth was steady, supported by robust underwriting and premium collections.
Gross profit stood at Rs. 1.49 billion, translating into a margin of 55.41%, higher than Q4 last year (61.51% but more consistent across this fiscal year). Net income reached Rs. 532.33 million, compared to Rs. 667.94 million a year ago, reflecting a net margin of 19.82%, stable compared to recent quarters but lower than last year’s exceptionally high 32.24%.
From a shareholder perspective, EPS (annualized) was Rs. 21.29, compared to Rs. 26.72 in Q4 last year. The PE ratio stood at 28.95, suggesting fair valuation relative to sector standards. Book Value per Share improved to Rs. 290.00, while Market Value per Share stood at Rs. 616.36, slightly down from Rs. 632.00 last year. Dividend distribution has not been announced this year (last year: Rs. 8.75 per share).
Insurance Operations
Policy Growth: HEI issued 280,428 policies in Q4, a 1.16% YoY increase, while renewed policies rose sharply to 61,156, up 25.31% YoY, indicating strong customer retention.
Claims: Claims paid rose to 11,627 cases, up 27.13% YoY, reflecting higher settlement activity, while outstanding claims increased slightly to 8,444 cases.
Premiums: The company reported Gross Written Premiums of Rs. 2.77 billion in Q3, underlining steady business momentum.
Investments
HEI’s investment portfolio remains a backbone of stability:
Long-term investments stood at Rs. 644.32 million, relatively stable compared to Rs. 744.83 million last year.
Short-term investments were reported at Rs. 453.79 billion, highlighting ample liquidity and strong financial positioning.
Written by
Sandeep Chaudhary