Almost all twelve life insurance companies listed on NEPSE hit their positive circuit or were extremely close to hitting it. The life insurance index is up by 9.78% in a single day.

https://preview.redd.it/094tfomg6v781.png?width=980&format=png&auto=webp&s=bf1dfadfd35acf8da5e819d286145483f7261568

It is hard to value these life insurance companies to say the least. And the EPS and book value were of not much (PE is too high). So, I looked at it from a simple relative metric: Total no. of policies / Market Cap

Basic question I wanted the answer to was, How much will investors have to pay per policy to own life insurance companies?

I have a detailed breakdown of life insurance companies’ EPS, book value, ROA, ROE and the simple relative metric I used here: [https://savingsnepal.com/life-insurance-index-up-by-9-78-in-a-single-day/](https://savingsnepal.com/life-insurance-index-up-by-9-78-in-a-single-day/)

**The TLDR:** *[NLICL] National Life Insurances’ relative price to market cap is lowest at Rs 30,223 per policy, followed in second by [SLICL] Surya Life Insurance at 41,863 and in third by [LICN] Life Insurance Nepal at 54,950.  Am I grasping at straws here?*

As to what caused the sudden rise, I guess we’ll find out in the coming days or weeks.

I definitely want to hear what life insurance companies do you guys like and why? What am I not seeing?

Edit: u/Sandbox_01 linked an article published afterhours[. According to the article](https://merolagani.com/NewsDetail.aspx?newsID=76977): ” Insurance Committee Spokesperson and Executive Director Rajuraman Poudel has said that the paid up capital of insurance companies will be increased. …there was no discussion on how much to increase the capital so far. The market is rumored to increase the paid-up capital of life insurance companies to Rs 5 billion and non-life insurance companies to Rs 3 billion.”

More at: r/NepalStock by 1v9nwinning

5 comments
  1. https://insurancekhabar.com/2021/12/130913/

    International guidelines anusar capital raise garne kura ho

    I had posted this link some days ago as well

    But it too early people are just crazy about right share Likely coming

    Without a chairman at sebon it is impossible to get right share approval right now.

    Plus beema samati itself has not given any go ahead. They have said they will want mergers as first priority.

    Every one going crazy on no good sources or news.
    Would be funny if they were made to only raise capital through fpo ????

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