Top Life Insurance Companies Listed On NEPSE [Based On Market Value]
September 5, 2021 | Investopaper
The market capitalization of a company refers to the total market value of the outstanding shares of that company. So, basically the market capitalization (also known as market cap or market value) of a company is obtained by multiplying the market price per share to the number of outstanding shares of that company. This calculation will help you to determine the size and the strength of the company in the market.
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Market capitalization can be helpful to diversify your portfolio because it is essential to pick different sized companies to minimize the risk associated with your investment. One of the basic features of blue-chip stocks is large market capitalization. On the other hand, the company with small market capitalization can become the most valuable companies in your portfolio if they become successful. But they have a high risk compared to large-cap companies.
Market cap is also a useful metric to determine the changing position of a company in the stock market either it be large, medium or small companies. Likewise, it also reflects the overall market behavior and sentiment too. For instance, when the total market cap of a Nepalese stock market increases on a daily basis for a time period, it is understandable that the market is on an upward trend and vice versa.
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Market Capitalization Of Life Insurance Companies In Nepal
The table below presents the life insurance companies along with the share price, listed shares and the market capitalization.
| S.N. | Stock Name | Stock Symbol | No. Of Listed Shares | Share Price (Rs.) | Market Capitalization (Rs ‘Arba’) |
| 1 | Nepal Life Insurance Co. Ltd. | NLIC | 71,999,707 | 1806 | 130.03 |
| 2 | Life Insurance Co. Nepal | LICN | 22,110,000 | 2177 | 48.13 |
| 3 | National Life Insurance Co. Ltd. | NLICL | 33,908,896 | 1106 | 37.50 |
| 4 | Asian Life Insurance Co. Limited | ALICL | 20,107,608 | 1338 | 26.90 |
| 5 | Prime Life Insurance Company Limited | PLIC | 24,170,570 | 899 | 21.73 |
| 6 | Surya Life Insurance Company Limited | SLICL | 22,628,950 | 887 | 20.07 |
| 7 | Jyoti Life Insurance Ltd | JLI | 22,000,000 | 710 | 15.62 |
| 8 | Union Life Insurance Company Limited | ULI | 21,500,000 | 718 | 15.44 |
| 9 | Prabhu Life Insurance Limited | PLI | 20,000,000 | 729 | 14.58 |
| 10 | Gurans Life Insurance Company Ltd. | GLICL | 19,755,846 | 705.5 | 13.94 |
| 11 | Reliance Life Insurance Limited | RLI | 21,000,000 | 647 | 13.59 |
| 12 | Sanima Life Insurance Limited | SLI | 20,000,000 | 339.9 | 6.80 |
Note:
The share price is of September 2, 2021 [Bhadra 17, 2078 BS]. The total listed shares of the banks is of Mid-July 2021 [Ashad end, 2078 BS]. At current, the share price as well as listed shares may vary along with the market capitalization.
Conclusion
From the above table, we can conclude that Nepal Life Insurance is the top life insurance company of Nepal in terms of market capitalization. Also the leader of the life insurance sector of Nepal, Nepal Life Insurance has a market value of Rs 130.03 Arba (As of Bhadra 17, 2078 BS). It is followed by LIC Nepal with Rs 48.13 Arba market capitalization. Similarly, Sanima Life Insurance has the lowest market value among the life insurance with Rs 6.80 Arba. The average market cap of the life insurance companies in Nepal is Rs 30.36 Arba.
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