Kathmandu: During the last fiscal year 2077/78, Reliable Nepal Life has managed to improve both its insurance premium and total premium collection by more than 88 percent.The company has earned Rs. 2.25 billion in net premiums last FYIn the previous fiscal year, premium income was only Rs. 1.57 billion.
Similarly, the total premium income has been increased to Rs. 3.1 billion. In the previous FY, such revenue was only Rs. 1.60 billion. Significant improvement in the number of insurance policies has also increased the company’s premium income. The total number of insurance policies of the company is 36.96 million. Whereas, in the previous year it was only 1.751 million. In terms of number of policy, the business has more than doubled.
However,the company’s profit is improved by only 5.39 percent. According to the unaudited financial statement, the company’s net profit is Rs. 225.9 million. The company’s net profit was Rs. 214.3 million in the previous year. The real profit of the insurance company is confirmed only after the actuarial valuation.
Along with the improvement in profits, the company’s reserve fund has increased by 31 percent to Rs 843.5 million. Similarly, the life insurance fund has also increased by 120 percent to Rs. 2.85 billion.
With the increase in premium income, the long-term liability of the company is increasing. Meanwhile, the company’s long-term investment has also increased by 116 percent. The company has made long-term investments of Rs. 3.93 billion in various sectors. Similarly, the loan taken by the insured on the security of insurance policy has increased more than five and a half times this year. A loan of Rs. 62.8 million has been disbursed by against the collateral of insurance policy.
The company’s management expenses have increased by 67 percent to Rs. 51.8 million. Last year, claims payments increased by 123 percent. The company has settled the claim payment of Rs. 679.8 million. Agent commission has also increased by 69 percent. The agents have received total commission of Rs. 427.6 million. Earnings per share is Rs. 16. The company, which is preparing to issue primary shares at a premium, has a net worth of Rs. 165. Such net worth has increased by Rs. 16 in one year.