Kathmandu: Prabhu Life Insurance Company has managed to increase its profit by 283 percent in the last fiscal year 2077/78. The company has earned a net profit of Rs. 176 million during last FY. In the previous fiscal year, it was only Rs 44.40 million.
During the same period, the company’s investment loans and other income increased by 170 percent. The company has earned Rs. 244.4 million from such investment. In the previous year, such income was only Rs. 93 million. The company’s long-term investments and loans have declined by 5 percent, while policy loan has increased by 7.91 times. The insured have taken a loan of Rs. 374.4 million only by pledging the insurance policy.
Management expenses, on the other hand, declined by 31 percent. Due to the limited movement of marketing workforce during Covid19 Pandemic, the management expenses of the companies have been controlled.
The company has earned Rs. 1.40 billion net premium by increasing its own premium income by 20 percent. Such income was Rs. 1.15 billion in the corresponding period of the previous year. Similarly, the total premium income has also increased by 21 percent to Rs. 1.45 billion.
Prabhu Life paid its own claim of Rs. 76.40 million last year. Last year it was only Rs. 8 million. The commission received by agents has also increased by 38 percent. The agents have received a commission of Rs. 222.1 million.
The company has increased its paid-up capital to Rs. 2 billion by issuing primary shares. Along with the improvement in profit, the reserve fund has also increased by 165 percent. Rs. 39.53 million has been added to the fund. Prabhu’s earnings per share is Rs. 8 while his net worth per share is Rs. 121.