Kathmandu: Asian Life, Prime Life and Surya Life are the 3rd generation life insurance companies of Nepal. These life insurance companies along with Guransh life have came into operation 13 years ago.
These days we have found that investors of secondary market are interested to compare these companies for their investment opportunity.
We have presented here the comparative analysis of Asian Life, Prime Life and Surya Life :
Based on paid up capital:
Prime Life Insurance has the highest paid up capital among these three companies. Prime Life has a paid up capital of Rs 2.41 billion where as Surya Life and Asian Life has Rs 2.26 billion and Rs 2.1 billion respectively.
Based on reserve fund:
Surya Life has a reserve fund of Rs 800 million, Asian Life Rs 730 million and Prime Life’s reserve fund is of Rs 620 million.
Asian Life’s reserves increased by 47 percent during the review period, while Surya Life’s reserves increased by 35 percent.But Prime Life’s reserves declined by 41 percent.
Based on Life Insurance Fund:
Asian Life has the largest life insurance fund. While Asian has Rs 25.41 billion in its life fund, Prime has Rs 14 billion in life fund.Surya Life has the lowest life fund of Rs 10 billion. During the review period, Surya Life’s life insurance fund grew the most at 51 percent.
Asian Life has earned Rs 4.59 billion net premium during the first 9 months of the current fiscal year 77/78.Prime Life has earned Rs 3.07 billion and Surya Life has earned Rs 3.23 billion respectively. Surya Life’s premium income has seen a whopping growth of 83 percent.
Based on net profit:
Surya Life has made the highest net profit till the third quarter Rs 290 million, Prime Life made a profit of Rs 220 million and Asian Life has the lowest profit of Rs. 180 million. Surya Life’s profit has increased by 56 percent during the review period.
Based on earnings per share:
Surya Life has the highest earnings per share of Rs 17.11.
By book value:
The maximum book value of Surya Life is Rs 142.
While preparing this news, the market price of Asian Life was Rs. 1475, Prime Life’s Rs. 1015. The market price of Surya Life is Rs. 993.
Although the size of Asian Life’s business is large, Surya Life’s business growth has been good.
(The data is presented from the financial statements published by the respective companies. This analysis is not complete. Investors need to do more research before making a trading decision.)