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.

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