Comparing the performance of 5 New Life Insurers

Kathmandu:Union Life, Jyoti Life, Prabhu Life, Reliance Life and Sanima Life Insurance are among new life insurance companies which have issued IPOs.Five companies have made public their financial statements for the fourth quarter (12 months) of FY 77/78.  A comparative study by insurancekhabar on these five new life insurance companies is here:

Based on paid up capital:

The paid up capital of Union Life, Jyoti Life, Reliance Life and Prabhu Life are Rs.2.15 billion,Rs.2.20 billion, Rs 2.10 billion and Rs. 2 billion respectively.

As per the details of the fourth quarter, Sanima Life’s paid-up capital is Rs.1.40 billion, but if the company has issued an IPO of Rs.600 million, the company’s capital will reach Rs.2 billion.

Based on reserve fund:

Union Life is ahead in the reserve fund.  Union Life has a reserve fund of Rs 768.8 million, while Reliance Life has the lowest reserve fund of Rs 205.2 million.

Based on Life Insurance Fund:

Union Life is ahead in the life insurance fund.Union Life has a life insurance fund of Rs.7.65 billion while Prabhu Life has a life insurance fund of Rs 1.94 billion.

Based on the sum insured:

Union Life has earned Rs. 6.58 billion net insurance premium in the last 12 months, while Prabhu Life has earned Rs.1.40 billion net insurance premium.

Based on net profit:

Prabhu Life is ahead on the basis of net profit. Prabhu Life has made a net profit of Rs. 170.6 million during the 12 months period, while Reliance Life Insurance has made the lowest net profit of Rs.71 million.

Prabhu Life has an earnings per share of Rs 8.53 while Reliance Life has the lowest earnings per share of Rs 3.34.

However, in the case of life insurance companies, the actual profit is yet to be assessed and the real profit will come only after the actuarial assessment.

By book value:

The maximum book value of Union Life Insurance is Rs.139.73 while the lowest book value of Reliance Life is Rs. 110.85 paise.

By market price:

Based on the final market price, Union Life has a market value of Rs.821, while Reliance Life has the lowest market value of Rs.704.

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