Himalayan Life Insurance Limited (HLI) has published its financial report for the second quarter of the fiscal year 2081/82, showcasing steady growth in key areas. The company reported an 8.73% increase in net profit, reaching Rs. 37.62 crores, compared to the same period last year. This growth reflects HLI’s ability to maintain profitability despite rising expenses. Below is a detailed breakdown of its performance:
1. Key Financial Highlights
- Net Profit: Increased by 8.73% to Rs. 37.62 crores.
- Net Premium: Grew by 2.13% to Rs. 8.6 Arba.
- Income from Investments, Loans, and Other Sources: Rose by 6.91% to Rs. 2.89 Arba.
- Life Insurance Fund: Expanded by 9.55% to Rs. 70.70 Arba.
- Total Investments: Increased by 8.70% to Rs. 71.06 Arba.
2. Retained Earnings and Other Equity
- Retained Earnings: Witnessed a significant 50.09% increase, reaching Rs. 2.13 Arba.
- Other Equity: Declined sharply by 167.68%, resulting in a negative balance of Rs. 17.08 crores.
3. Expenses
- Net Claim Payments: These payments rose by 7.49%, reaching Rs. 9.89 Arba.
- Commission Expenses: Commission expenses increased slightly by 0.39% to Rs. 65.89 crores.
Despite these rising costs, the company managed to maintain stable earnings, showcasing its operational efficiency.
4. Shareholder Metrics
- Earnings Per Share (EPS): The annualized EPS is Rs. 9.38, reflecting the 8.73% increase in profit.
- Net Worth Per Share: Increased by 3.11% to Rs. 130.21, indicating growth in shareholder value.
Comparison of Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.
Conclusion
Himalayan Life Insurance Limited (HLI) has delivered a strong financial performance in the second quarter of FY 2081/82, with an 8.73% rise in net profit and steady growth in net premiums and investment income. Despite higher claim payments and commission expenses, the company’s ability to maintain profitability and improve shareholder metrics like EPS and net worth per share highlights its resilience and effective management. HLI continues to strengthen its position in the insurance sector, offering promising prospects for its stakeholders.