Sanima Reliance Life Insurance's Net Profit Shows Modest Growth, Decline in EPS

Sanima Reliance Life Insurance Limited (SRLI) has published its unaudited financial report for the second quarter of the fiscal year 2081/82. The report highlights the company’s financial performance, including profit, premium income, and other key metrics.

Net Profit:

• The company’s net profit reached NPR 231.6 million, a 5.44% increase compared to the same period last year.

• Last year’s net profit for the same period stood at NPR 219.7 million.

Net Earned Premium:

• Increased by 18.73%, reaching NPR 3.11 billion.

Total Income:

• Rose by 20.97% to NPR 4.12 billion.

Net Benefits and Claims Paid:

• Increased by 24.92%, amounting to NPR 3.17 billion.

Total Expenses:

• Grew by 21.99%, reaching NPR 3.88 billion.

EPS (Earnings Per Share):

• Dropped to NPR 9.36 from NPR 10.50 last year, a decrease of NPR 1.14.

Price-to-Earnings (PE) Ratio:

• Remained steady at 44.47 times.

Net Worth Per Share:

• Stood at NPR 114.38.

Paid-up Capital:

• The company’s paid-up capital reached NPR 4.95 billion.

Catastrophe Reserve and Retained Earnings:

• Catastrophe reserve stood at NPR 134.3 million, while retained earnings declined to NPR 508.5 million.

Sanima Reliance Life Insurance has shown commendable progress in premium income and total revenue during the second quarter of FY 2081/82. However, the modest growth in net profit and the decline in earnings per share (EPS) indicate challenges in maximizing returns relative to paid-up capital. The company’s consistent rise in claims paid and expenses emphasizes the need for enhanced cost and risk management strategies.