Top 10 Life Insurance Company for Investment in 2077; Comparative Study

All the insurance companies have published their fourth quarter report of FY 2076/77.  On the basis of fourth quarterly financial report, we will discus 10 best insurance companies performance. Let us compare performance of insurance companies on the basis of element and indicators.

There are some of the new insurance companies which has not issued IPO (excluding Reliance Life Insurance). They are presented below:

1. Reliable Nepal Life Insurance
2. Sanima Life Insurance
3. Reliance Life Insurance
4. Citizen Life Insurance
5. Jyoti Life Insurance
6. Union Life Insurance
7. IME Life Insurance
8. Prabhu Life Insurance
9. Mahalaxmi Life Insurance
10. Sun Nepal Life Insurance

Net Profit for the period:

As of the fourth quarter report of FY 2076/77, Nepal Life Insurance Company Limited (NLIC) has earned the highest net profit of Rs 53.04 crores. It is further followed by National Life Insurance Company Limited (NLICL) with net profit of Rs 39.12 crores. Metlife American Life Insurance Company Limited (ALIO) has a third highest net profit of Rs 32.80 crores.

Company Name	Net Profit (in ‘crores’)
Nepal Life Insurance Company	53.04
National Life Insurance Company	39.12
Metlife American Life Insurance Company	32.8
Prime Life Insurance Company	29.86
Surya Life Insurance Company	26.28
Reliable Nepal Life Insurance Company	21.44
Citizen Life Insurance Company	20.07
Asian Life Insurance Company	18.19
IME Life Insurance Company	12.91
Jyoti Life Insurance Company	12.53

Number of Policies:

New Life Insurance Company Reliable Nepal Life Insurance Limited has the highest number of policies of 17.51 lakhs. Nepal Life Insurance Company Limited stands on second position with 13.04 lakhs insurance policies followed by Met-Life American Insurance Company Limited with 11.01 lakhs policies.

S.N	Company Name	No. of Policies
1	Reliable Nepal Life Insurance Company	1,751,455
2	Nepal Life Insurance Company	1,304,632
3	Metlife-American Life Insurance Company	1,101,953
4	National Life Insurance Company	810,832
5	Life Insurance Corporation (Nepal)	762,163
6	Surya Life Insurance Company	309,887
7	Asian Life Insurance Company	290,723
8	Prime Life Insurance Company	290,538
9	Union Life Insurance Company	278,828
10	Gurans Life Insurance Company	165,219

Net Premium:

Nepal Life Insurance Company Limited has the highest net premium of Rs 27.34 arba. Life Insurance Corporation Nepal Limited stands on second position with net premium of Rs 14.83 arba. National Life Insurance Company Limited secure third position with net premium of Rs 9.11 arba.

Company Name	Net Premium (in ‘crores’)
Nepal Life Insurance Company	2734.04
Life Insurance Corporation (Nepal)	1483.85
National Life Insurance Company	911.41
Rastriya Beema Sanstha	706.42
Asian Life Insurance Company	454.08
Union Life Insurance Company	450.23
Metlife American Life Insurance Company	401.64
Prime Life Insurance Company	326.26
Surya Life Insurance Company	284.54
Gurans Life Insurance Company	220.17

Life Insurance Fund:

Nepal Life Insurance Company Limited has the highest insurance fund with Rs 87.02 arba, followed by Life Insurance Corporation Nepal with insurance fund of Rs 67.70 arba and National Life Insurance Company Limited with Rs 33.72 arba in the insurance fund.

S.N	Company Name	Life Insurance Fund (in ‘crores’)
1	Nepal Life Insurance Company	8,702.60
2	Life Insurance Corporation (Nepal)	6,770.15
3	National Life Insurance Company	3,372.16
4	Rastriya Beema Sanstha	2,654.39
5	Asian Life Insurance Company	2,161.02
6	Metlife American Life Insurance Company	1,786.11
7	Prime Life Insurance Company	1,147.67
8	Gurans Life Insurance Company	766.01
9	Surya Life Insurance Company	742.75
10	Union Life Insurance Company	428.15

Paid-up Capital:

Nepal Life Insurance Company Limited has highest paid up capital of Rs 5.49 arba. National Life Insurance Company Limited stands on second position with paid up capital of Rs 3.08 arba. Prime Life Insurance Company Limited seen in the third position with Rs 2.25 arba paid up capital.

S.N	Company Name	Paid up Capital (in ‘crores’)
1	Nepal Life Insurance Company	549.62
2	National Life Insurance Company	308.26
3	Prime Life Insurance Company	225.89
4	Surya Life Insurance Company	215.51
5	Asian Life Insurance Company	201.08
6	Life Insurance Corporation (Nepal)	201.00
7	Citizen Life Insurance Company	175.00
8	Jyoti Life Insurance Company	154
9	Union Life Insurance Company	150.5
10	Reliable Nepal Life Insurance Company	147

Reserve and Surplus:

The top three insurance company with highest reserve and surplus are Nepal Life Insurance Company Limited with Rs 350.77 crores, Metlife American Life Insurance Company with Rs 243.73 crores and National Life Insurance Company Limited with Rs 103.62 crores reserve and surplus.

S.N	Company Name	Paid up Capital (in ‘crores’)
1	Nepal Life Insurance Company	350.77
2	Metlife-American Life Insurance Company	243.73
3	National Life Insurance Company	103.62
4	Prime Life Insurance Company	88.98
5	Surya Life Insurance Company	66.87
6	Reliable NepalLife Insurance Company	64.02
7	Asian Life Insurance Company	54.71
8	Life Insurance Corporation (Nepal)	51.83
9	Citizen Life Insurance Company	49.62
10	Union Nepal Life Insurance Company	44.86

Earning Per Share (EPS):

As per the fourth quarter, Ratriya Beema Sanstha has highest EPS stands at Rs 32.63 per share. Similarly, Reliable Nepal Life Insurance Company stands on second position with Rs 15.31 per share and Prime Life Insurance Company Limited third highest EPS provider with Rs 13.22 per share.

S.N	Company Name	EPS (Rs)
1	Rastraya Beema Sanstha	32.63
2	Reliable Nepal Life Insurance Company	15.31
3	Prime Life Insurance Company	13.22
4	National Life Insurance Company	12.69
5	Surya Life Insurance Company	12.19
6	Citizen Life Insurance Company	11.47
7	Gurans Life Insurance Company	10.12
8	Nepal Life Insurance Company	9.65
9	IME Life Insurance Company	9.22
10	Asian Life Insurance Company	9.04

Net Worth Per Share:

Among all insurance company, Rastriya Baama Sanstha has highest net worth of Rs 257.91 per share followed by Nepal Life Insurance Company Limited with net worth of Rs 173.92 per share. Similarly, Reliable Nepal life insurance secure third position with net worth of Rs 149.82 per share.

S.N	Company Name	Net Worth (Rs)
1	Rastraya Beema Sanstha	257.91
2	Nepal Life Insurance Company	173.92
3	Reliable Nepal Life Insurance Company	149.82
4	Prime Life Insurance Company	145.56
5	Gurans Life Insurance Company	144.95
6	Life Insurance Corporation (Nepal)	137.54
7	Surya Life Insurance Company	136.1
8	National Life Insurance Company	133.61
9	Union Life Insurance Company	133.12
10	Asian Life Insurance Company	130.25

PE Ratio:

PE ratio is a popular financial ratio that helps a investor for better knowledge of the value of company stock. Surya Life Insurance Company Limited  has least PE ratio of 36.74 times. Similarly, Prime Life Insurance Company Limited stand on second position with PE ratio of 40.18 times, followed by Gurans Life Insurance Company Limited with PE ratio of 45.94 times.

S.N	Company Name	PE Ratio (times)
1	Surya Life Insurance Company	36.74
2	Prime Life Insurance Company	40.18
3	Gurans Life Insurance Company	45.94
4	National Life Insurance Company	52.16
5	Asian Life Insurance Company	67.11
6	Nepal Life Insurance Company	130.57
7	Life Insurance Corporation (Nepal)	223.16

Conclusion after study and analyze of above figure, Nepal Life Insurance has maintain lead in many indicators. Among new life insurance, Reliable Nepal Life Insurance has strong financial performance and position. Some of the Life Insurance Company may issue IPO in this fiscal year as soon SEBON approve their IPO proposal.