Reliable Nepal Life Insurance Limited (RNLI) has recently announced a noteworthy 4.97% increase in its net profit, reaching Rs. 23.09 crore in the current quarter, as opposed to Rs. 22 crore in the corresponding quarter of the previous year. The company, with a paid-up capital of Rs. 4 Arba and a share premium of Rs. 1.75 Arba, has demonstrated financial stability, boasting Rs. 1.23 Arba in retained earnings, Rs. 5.56 Crores in other equity, and Rs. 14.37 Crores in catastrophe reserves. Additionally, RNLI maintains a life insurance fund of Rs. 8.54 Arba.
Operationally, RNLI has shown resilience with a 1.74% increase in net premiums, totaling Rs. 1.75 Arba in Q2 FY 2080/81 compared to the previous year. The company’s financial acumen is highlighted by its ability to generate Rs. 63.90 Crores from income derived from investments, loans, and other financial activities. However, it’s important to note that there was a 21.85% increase in net claims during the quarter, amounting to Rs. 1.63 Arba.
Key financial indicators underscore RNLI’s strong performance, with an annualized earnings per share (EPS) of Rs. 11.55, net worth per share of Rs. 179.71, and a P/E ratio of 49.01 times. It’s crucial to acknowledge that final profit in the life insurance sector may vary based on actuarial valuation, in line with industry practices.
The provided figures indicate a positive trend for RNLI, showcasing its robust financial position, operational efficiency, and strategic investments. The company’s commitment to maintaining reserves and prudent financial management contributes to its overall stability and growth in the competitive insurance sector.
