Sanima Reliance Life Insurance Company Limited (SRLI) has announced its financial results for the second quarter of the fiscal year 2081/82, showcasing a 5.44% increase in net profit. The company reported a net profit of Rs. 23.16 crores, up from Rs. 21.97 crores in the same period last year. Despite rising expenses, SRLI maintained stable financial performance, reflecting its resilience and effective management. Below is a detailed breakdown of its performance:
1. Key Financial Highlights
- Net Profit: Increased by 5.44% to Rs. 23.16 crores (up from Rs. 21.97 crores in Q2 of FY 2080/81).
- Net Premiums: Grew by 18.73% to Rs. 3.11 Arba.
- Income from Investments, Loans, and Other Activities: Generated Rs. 79.26 crores, contributing to overall revenue.
2. Financial Position
- Paid-up Capital: Stood at Rs. 4.95 Arba.
- Reserves:
- Retained Earnings: Rs. 50.84 crores.
- Other Equity: Rs. 6.93 crores.
- Catastrophe Reserves: Rs. 13.43 crores.
3. Expenses
- Net Claims: Increased by 24.92% to Rs. 3.17 Arba.
- Commission Expenses: Rose by 7.85% to Rs. 31.05 crores.
Despite these rising costs, SRLI managed to maintain profitability, showcasing its ability to balance growth and expense management.
4. Key Financial Indicators
- Earnings Per Share (EPS): Annualized EPS stood at Rs. 9.36, reflecting the company’s profitability.
- Net Worth Per Share: Rs. 114.38, indicating the value of each share based on the company’s net assets.
- Price-to-Earnings (P/E) Ratio: 44.57, 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
Conclusion
Despite a notable increase in net claims and commission expenses, SRLI managed to boost its net profit by 5.44% and maintain a strong financial position. With a solid base of paid-up capital and reserves, along with healthy growth in net premiums and stable key indicators like EPS and net worth per share, the company remains well-positioned for future challenges and opportunities.