IME Life Insurance Company Limited (ILI) has showcased impressive financial results for the second quarter of the fiscal year 2081/82. The company has reported a significant increase in net profit, along with steady growth in other key financial areas. Below is a detailed breakdown of its performance:
1. Increase in Net Profit
ILI recorded a 14.12% rise in net profit during the second quarter of FY 2081/82. The net profit climbed to Rs. 26.78 crores, up from Rs. 23.47 crores in the same quarter of the previous fiscal year. This growth highlights the company’s ability to maintain profitability despite challenges in the market.
2. Strong Financial Base
The company continues to maintain a robust financial position, supported by the following:
- Paid-up Capital: Rs. 5 Arba
- Share Premium: Rs. 52.38 crores
- Reserves:
- Retained Earnings: Rs. 1.38 Arba
- Other Equity: Rs. 48.77 crores
- Catastrophe Reserves: Rs. 21.75 crores
This solid foundation ensures the company’s stability and ability to meet future obligations.
3. Growth in Net Premiums and Revenue
ILI experienced a 17.22% increase in net premiums, which reached Rs. 2.33 Arba during the quarter. Additionally, the company generated Rs. 66.88 crores from investments, loans, and other financial activities. This growth reflects the company’s effective management of its core operations and investment portfolio.
4. Increase in Net Claims and Commission Expenses
While the company achieved growth in several areas, it also faced higher expenses:
- Net Claims: Increased by 20.33% to Rs. 2.25 Arba.
- Commission Expenses: Rose by 7.74% to Rs. 22.02 crores.
These increases indicate higher payouts and operational costs, which are common in the insurance industry.
5. Key Financial Indicators
ILI’s financial health remains strong, as reflected in the following key metrics:
- Earnings Per Share (EPS): Rs. 10.71 (annualized)
- Net Worth Per Share: Rs. 152.23
- Price-to-Earnings (P/E) Ratio: 43.55
These indicators demonstrate the company’s profitability and attractiveness to investors.
Comparison of IME Life Insurance’s Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.
Conclusion
IME Life Insurance Company Limited (ILI) has delivered a strong financial performance in the second quarter of FY 2081/82, with significant growth in net profit, net premiums, and revenue. Despite higher claims and commission expenses, the company’s solid financial base and strong key indicators position it well for future growth and stability.
IME Life Insurance Q2 Financial Report for FY 2081/82.
