Citizen Life Insurance Company Limited (CLI) has delivered an outstanding financial performance in the second quarter of the fiscal year 2081/82. The company reported an 86.78% growth in net profit, reaching Rs. 23.09 crores, compared to Rs. 12.36 crores in the same period last year. This remarkable growth highlights CLI’s strong operational efficiency and financial management. Below is a detailed breakdown of its performance:
1. Key Financial Highlights
- Net Profit: Increased by 86.78% to Rs. 23.09 crores (up from Rs. 12.36 crores in Q2 of FY 2080/81).
- Net Premiums: Grew by 23.31% to Rs. 3.18 Arba.
- Income from Investments, Loans, and Other Activities: Generated Rs. 95.06 crores, contributing to overall revenue.
2. Financial Position
- Paid-up Capital: Stood at Rs. 3.93 Arba.
- Share Premium: Amounted to Rs. 1.55 Arba.
- Reserves:
- Retained Earnings: Rs. 83.8 crores.
- Other Equity: Rs. 63.88 crores.
- Catastrophe Reserves: Rs. 19.28 crores.
3. Expenses
- Net Claims: Increased by 23.31% to Rs. 3.21 Arba.
- Commission Expenses: Rose by 15.59% to Rs. 31.85 crores.
Despite these rising costs, CLI 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. 11.73, reflecting the company’s profitability.
- Net Worth Per Share: Rs. 181.82, indicating the value of each share based on the company’s net assets.
- Price-to-Earnings (P/E) Ratio: 59.24, suggesting the stock’s valuation relative to its earnings.
Comparison of Key Financial Highlights for Q2 of FY 2081/82 and the Previous Fiscal Year
ConclusionCLI’s strong Q2 performance, highlighted by a significant jump in net profit and steady growth in net premiums, reflects its strong financial health. Although net claims and commission expenses have also increased, the company’s solid financial base and key indicators, such as EPS and net worth per share, signal a positive outlook for future growth.