Kathmandu: The total premium income (TPI) growth rate of Nepal Life Insurance Company (NLIC) has witnessed a slowdown in the last fiscal year. It’s TPI has gained a growth rate of 8.69 percent in FY 78-79 against the growth rate of 17.18 percent of previous fiscal year.
NLIC has earned TPI Rs.35.44 billion in FY 2078-79 against Rs. 32.36 billion in the previous FY. The average growth rate of the life insurance companies remained 14.63 percent during last fiscal year against the growth rate of 27.12 percent in the previous fiscal year.
NLIC has been able to increase the size of life fund by 21.58 percent to Rs.1.36 trillion by the end of Asar of the last FY. The life fund was Rs.1.12 trillion on previous FY.
Even though the company earned more than Rs.78 crores, it occurs a loss above Rs. 77 crores due to loss provisioning against the investment in the secondary market. The net loss of the company till the end of Asar of the financial year 78/79 is Rs.35.27 crore . However, in the case of life insurance companies, the real profit it realized only after the actuarial valuation. Similarly, in the previous financial year, the company had earned Rs.185.55 million by refunding provisioning.
The company management has succeeded in reducing the outstanding claim amount by about 33 percent. According to the unaudited financial report of the fourth quarter of NLIC, Rs.2.55 billion were paid in the previous financial year. Now, the outstanding claim amount is only Rs.1.71 billion till the last FY. NLIC has also been aggressive in claim settlement. In a period of 1 year, the company has paid a total of Rs.13.32 billion against death claims. In the previous financial year, the amount was Rs.9.71 billion only.
The paid up capital of the company is Rs.8.20 billion while Rs. 288.3 million is accumulated in the reserve fund. According to the unaudited financial report, the earnings per share(EPS) is Rs. 4.30 paise negative while the book value is Rs. 112.29 paisa.
Nepal Life has disbursed Rs.24.76 billion loans under insurance policy mortgage loan and that the loan amount is 27 percent more than the previous FY. Similarly, in the financial year 78/79, the company has paid Rs .3.52 billion against agency commission.
