Reliable Nepal Life Insurance Limited (RNLI) has delivered an impressive financial performance in the second quarter of the fiscal year 2081/82. The company reported a 52.76% increase in net profit, reaching Rs. 35.28 crores, compared to Rs. 23.09 crores in the same quarter of the previous year. This growth highlights RNLI’s strong operational efficiency and financial management. Below is a detailed breakdown of its performance:
1. Key Financial Highlights
- Net Profit: Increased by 52.76% to Rs. 35.28 crores (up from Rs. 23.09 crores in Q2 of FY 2080/81).
- Net Premiums: Grew by 26.59% to Rs. 2.21 Arba.
- Income from Investments, Loans, and Other Activities: Generated Rs. 69.19 crores, contributing to overall revenue.
2. Financial Position
- Paid-up Capital: Stood at Rs. 4.64 Arba.
- Share Premium: Amounted to Rs. 1.75 Arba.
- Reserves:
- Retained Earnings: Rs. 1.04 Arba.
- Other Equity: Rs. 9.92 crores.
- Catastrophe Reserves: Rs. 19.85 crores.
3. Expenses
- Net Claims: Increased by 28.35% to Rs. 2.10 Arba.
- Commission Expenses: Rose by 10.39% to Rs. 24.13 crores.
Despite these rising costs, RNLI managed to maintain strong profitability, showcasing its ability to balance growth and expense management.
4. Key Financial Indicators
- Earnings Per Share (EPS): Annualized EPS stood at Rs. 15.21, reflecting the company’s profitability.
- Net Worth Per Share: Rs. 166.66, indicating the value of each share based on the company’s net assets.
- Price-to-Earnings (P/E) Ratio: 33.47, suggesting the stock’s valuation relative to its earnings.
Comparison of Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.
Conclusion
Reliable Nepal Life Insurance Limited (RNLI) has delivered an outstanding financial performance in the second quarter of FY 2081/82, with a 52.76% surge in net profit and significant growth in net premiums and investment income. Despite higher claims and commission expenses, the company’s strong financial position and key indicators like EPS of Rs. 15.21 and net worth per share of Rs. 166.66 highlight its resilience and growth potential. RNLI continues to strengthen its position in the insurance sector, offering promising prospects for its stakeholders.