Nepal Life: Net Profit Increases by 9.45%, Insurance Premium Collection Improves by 12.26%

Nepal Life Insurance Limited (NLIC) has published its unaudited financial report for the second quarter of the fiscal year 2081. According to the report, the company has shown some improvement in its financial performance.

Growth in Profit and Insurance Premium

As of the end of Poush (mid-January), the company has earned a net profit of NPR 468.1 million. This marks a 9.45% increase compared to the same period of the previous fiscal year when the net profit stood at NPR 427.7 million.

Similarly, the net insurance premium collection has also increased by 12.26%. The premium collection for the same period last year was NPR 19.71 billion, which has now risen to NPR 22.12 billion.

Total Income and Expenses

The company’s total income has increased by 14.35%, reaching NPR 33.39 billion. However, the total expenses have also risen by 15.10%, amounting to NPR 31.02 billion.

Earnings Per Share (EPS) and Net Worth

The Earnings Per Share (EPS) of the company has increased by NPR 0.99, reaching NPR 11.41. The company’s net worth per share stands at NPR 154.51.

Price-to-Earnings (PE) Ratio

The Price-to-Earnings (PE) ratio of the company is 70.42 times.

Capital Structure

The company has a paid-up capital of NPR 8.21 billion. It has accumulated NPR 1.30 billion in the catastrophe fund, NPR 2.38 billion in retained earnings, and NPR 782.7 million in other equity reserves.

The company has successfully improved its premium collection, income, and net profit; however, the significant rise in expenses remains a challenge. For investors, the increase in Earnings Per Share (EPS) and net worth per share sends a positive message.