Sagarmatha Insurance profit slides despite growth in premium by 19 percent

Sagarmatha Insurance Company has published the fourth quarter report of the fiscal year 2075/76. The report shows a decline in net profit by 20 percent. The profit has fallen to Rs. 27.66 crores. In the previous fiscal year, the company made a profit of Rs. 34.78 crores.

The profit has declined despite the rise in total premium by almost 19 percent in this fiscal year. Until the fourth quarter of the fiscal year 2075/76, Sagarmatha Insurance earned a total premium income of Rs. 217.92 crores. In the last fiscal year, the total premium collection stood at Rs. 183.80 crores.

Likewise, the net premium has grown by 17.28 percent to Rs. 101.42 crores.

The fall in profit of SIC can be mainly attributed to the increase in the net claim by 25 percent. Sagarmatha Insurance paid Rs. 55.40 crores as the net claim which is Rs. 11 crores higher than the previous year. Also, the company increased the provision for the outstanding claim by almost Rs. 15 crores.

The current capital stands at Rs. 100.12 crores. The capital surged by 86 percent from the previous year due to the issue of the massive bonus shares.

Hence, the reserved has declined by 35 percent to Rs. 34.33 crores at the end of this fiscal year.

The insurance fund stands at Rs. 48.88 crores. SIC has made a total investment of Rs. 255.16 crores. This is 42 percent higher than the investments in the previous fiscal year.

EPS stands at Rs. 27.62 crores. Similarly, the net-worth per share is Rs. 191.17.

The fourth-quarter report of Sagarmatha Insurance is summarized in the table below:

Sagarmatha Insurance Fourth Quarter, 2075/76

HEADINGS 4TH QTR, 2075/76 4TH QTR, 2074/75 PERCENT CHANGE
Paid-up Capital (Rs. ‘crores’) 100.12 53.83 85.99
Reserve & Surplus (Rs. ‘crores’) 34.33 52.98 -35.20
Insurance Fund  (Rs. ‘crores’) 48.88 48.88 0.00
Total Investments  (Rs. ‘crores’) 255.16 179.37 42.25
Total Premium (Rs. ‘crores’) 217.92 183.8 18.56
Net Premium  (Rs. ‘crores’) 101.42 86.48 17.28
Net Claim (Rs. ‘crores’) 55.4 44.4 24.77
Total Outstanding Claim (Rs. ‘crores’) 85.73 37.65 127.70
Net Profit  (Rs. ‘crores’) 27.66 34.78 -20.47
Earnings Per Share (Rs.) 27.62
Networth Per Share (Rs.) 191.17
Market Price (Rs.) [Ashad 31, 2076] 605
P/E Ratio [ based on the price of Ashad 31] 21.90

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