Kathmandu:NECO Insurance has been competing with Shikhar Insurance Company in terms of market share and profit making.NECO Insurance Company has been making progress in most of the financial indicators by strengthening its financial position.At present, Shikhar Insurance and NECO Insurance are being compared with great interest in the non-life insurance market.
Note: Share premium is also added to the reserve fund of Shikhar Insurance.
Based on paid up capital:
NECO Insurance has a paid up capital of Rs. 1.31 billion while Shikhar Insurance has a paid up capital of Rs. 1.75 billion.
Based on reserve fund:
NECO Insurance is ahead on the basis of reserve fund. Shikhar Insurance has a reserve fund of Rs. 667.7 million (including share premium) while NECO Insurance has a reserve fund of Rs.705 million.
By Insurance Fund:
Shikhar Insurance is ahead on the basis of insurance fund. Shikhar Insurance has accumulated Rs 1.29 billion in its insurance fund while NECO Insurance has accumulated Rs 1.11 billion in its insurance fund.
Based on total and net premium earnings:
Shikhar Insurance has collected a total of Rs. 3.97 billion in premiums and Rs 1.29 billion in net premiums. Similarly, NECO Insurance has collected Rs 2.41 billion in total premiums and Rs 1.63 billion in net premiums.
Based on net profit:
Shikhar Insurance has made a net profit of Rs.47.57 million till the fourth quarter of FY 77/78, while NECO Insurance has made a net profit of Rs 54.06 million.
By earnings per share:
Shikhar Insurance has a published annualized earnings per share of Rs 27.05 while NECO Insurance has a published annualized earnings per share of Rs 41.04.
By book value:
The published book value of Shikhar Insurance is Rs. 219 while the book value of NECO Insurance is Rs 243.
(The comparative data is prepared from the unaudited financial statements published by these company. This analysis is not complete. Investors need to do more research before making any investment decision in the secondary market.)