Prabhu Insurance Company Q2 Report of FY 2081/82

Prabhu Insurance Company Limited (PRIN) has announced its financial results for the second quarter of the fiscal year 2081/82, showcasing a 10.53% increase in net profit. The company made a net profit of Rs. 12.00 crores, up from Rs. 10.86 crores in the same period last year. Despite a decline in net premiums, PRIN demonstrated resilience through growth in investment income and reduced expenses. Below is a detailed breakdown of its performance:

Key Financial Highlights

Net Profit: Increased by 10.53% to Rs. 12.00 crores (up from Rs. 10.86 crores in Q2 of FY 2080/81).
Net Premiums: Declined by 34.18% to Rs. 28.26 crores (down from Rs. 42.93 crores in the previous year).
Income from Investments, Loans, and Other Sources: Grew by 14.55% to Rs. 4.15 crores (up from Rs. 3.62 crores last year).

Financial Position

Total Investments: Increased by 4.45% to Rs. 2.70 Arba (up from Rs. 2.59 Arba last year).
Insurance Fund: Grew significantly by 50.50% to Rs. 2.69 Arba (up from Rs. 1.78 Arba in the previous year).
Special Reserves: Increased by 4.63% to Rs. 1.35 Arba.
Catastrophe Reserves: Rose by 5.54% to Rs. 11.44 crores.

Expenses

Net Claim Payments: Decreased by 39.61% to Rs. 9.84 crores (down from Rs. 16.30 crores in the previous year).
Commission Expenses: Declined by 18.72% to Rs. 1.83 crores.

These reductions in expenses contributed to the company’s improved profitability.

Shareholder Metrics

Earnings Per Share (EPS): Increased by 10.53% to Rs. 16.66, reflecting the company’s profitability.
Net Worth Per Share: Grew by 5.37% to Rs. 234.14, indicating the value of each share based on the company’s net assets.
Price-to-Earnings (P/E) Ratio: Stood at 56.80, suggesting the stock’s valuation relative to its earnings.
Solvency Ratio: Maintained at a strong 1.94, showcasing the company’s financial stability.

Comparison of Key Financial Highlights for Q2 of FY 2081/82 and the Previous Fiscal Year

Particulars	Q2 2081/82	Q2 2080/81	Difference (%)
Share Capital	1,441,488.07	1,441,488.07	0.00%
Special Reserves	1,355,877.91	1,295,852.98	4.63%
Catastrophe Reserves	114,424.68	108,422.18	5.54%
Retained Earnings	309,218.40	256,527.92	20.54%
Other Equity	154,051.11	100,617.19	53.11%
Insurance Fund	2,693,835.69	1,789,900.88	50.50%
Investment	2,706,189.22	2,590,856.74	4.45%
Net Premium	282,560.59	429,289.80	-34.18%
Income from Investment, Loans & Others	41,521.73	36,248.47	14.55%
Claim Payment (Net)	98,429.08	162,978.84	-39.61%
Commission Expenses	18,281.97	22,493.72	-18.72%
Net Profit	120,049.85	108,612.12	10.53%
Number of Policies	52,385	59,263	-11.61%
EPS (In Rs.)	16.66	15.07	10.53%
Net Worth per Share (In Rs.)	234.14	222.19	5.37%
PE Ratio	56.80	–	–
Solvency Ratio	1.94	–	–

Conclusion

Prabhu Insurance Company Limited (PRIN) has delivered a steady financial performance in the second quarter of FY 2081/82, with a 10.53% increase in net profit and significant growth in investment income. Despite a decline in net premiums, the company’s ability to reduce claims and commission expenses, coupled with a strong insurance fund and reserves, highlights its resilience and effective management. With an EPS of Rs. 16.66, net worth per share of Rs. 234.14, and a robust solvency ratio of 1.94, PRIN continues to demonstrate its strength in the insurance sector.