Top 6 Non-Life Insurance in Nepal: Comparative Study [Updated]
August 24, 2022 | Investopaper
At current, there are 19 non-life insurance companies operating in Nepal. These companies have generated a total of Rs. 39.16 Arba in premium income in the last fiscal year 2078/79.
Related: Premium Collection By General Insurance Companies In Nepal
Here, we will try to make a financial comparison between the top 6 general or non-life insurance in Nepal. These six companies have grossed the highest premium collection in Nepal.
- Shikhar Insurance (SICL)
- Sagarmatha Insurance (SIC)
- Neco Insurance (NIL)
- Rastriya Beema Company (RBCL)
- Siddhartha Insurance (SIL)
- NLG Insurance (NLG)
The comparative study will be on the basis of the unaudited fourth quarterly report of the fiscal year 2078/79. We will compare the performance of these general insurance companies based on the different financial indicators such as:
- Paid-up Capital
- Reserve & Surplus
- Insurance Fund
- Total Investments
- Total Premium
- Net Premium
- Net Claim
- Total Outstanding Claim
- Net Profit
- Management Expenses
- Number Of Policies
- Earnings Per Share
- Networth Per Share
- Market Price Per Share
- P/E Ratio
- Market Capitalization
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Paid-Up Capital
Shikhar Insurance has the highest paid-up capital with Rs. 228.6 crores followed by Neco Insurance with the capital of Rs. 174.98 crores. On the other hand, Rastriya Beema Company has a paid-up capital of Rs 26.66 crores.
The table below presents the paid-up capital of the insurance companies.
| Non-Life Insurance Companies | Paid-up Capital (Rs. ‘crores’) |
| Shikhar Insurance | 228.6 |
| Neco Insurance | 174.98 |
| Sagarmatha Insurance | 133.36 |
| NLG Insurance | 132.66 |
| Siddhartha Insurance | 128.8 |
| Rastriya Beema Company | 26.66 |
Source: Unaudited Q4 Report, FY 2078/79
Reserve & Surplus and Insurance Fund
Rastriya Beema Company leads in total reserve and surplus with Rs. 338.52 crores. NLG Insurance has the lowest reserve of Rs. 31.11 crores. Similarly, Rastriya Beema Company has the highest insurance fund of Rs 266.66 crores while NLG Insurance is behind in insurance fund with Rs. 114.22 crores.
The reserve and insurance fund of the 6 non-life insurance companies is presented in the table below:
| Non-Life Insurance Companies | Reserve & Surplus (Rs. ‘crores’) | Insurance Fund (Rs. ‘crores’) |
| Rastriya Beema Company | 338.52 | 266.66 |
| Shikhar Insurance | 70.97 | 141.16 |
| Neco Insurance | 48.73 | 137.44 |
| Sagarmatha Insurance | 46.95 | 122.48 |
| Siddhartha Insurance | 31.26 | 116.83 |
| NLG Insurance | 31.11 | 114.22 |
Source: Unaudited Q4 Report, FY 2078/79
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Total Investment
Rastriya Beema Company has Rs. 636.47 crores as a total investment that exceeds the investment of other insurance companies. Neco and Shikhar Insurance have a total investment of Rs. 448.31 crores and Rs. 405.61 crores respectively. NLG Insurance has the lowest investment of Rs. 236.32 crores.
The investment made by the insurance companies is shown in the table below:
| Non-Life Insurance Companies | Total Investments (Rs. ‘crores’) |
| Rastriya Beema Company | 636.47 |
| Neco Insurance | 448.31 |
| Shikhar Insurance | 405.61 |
| Siddhartha Insurance | 354.89 |
| Sagarmatha Insurance | 345.72 |
| NLG Insurance | 236.32 |
Source: Unaudited Q4 Report, FY 2078/79
Note: The total investment includes both the long term and short term investments.
Related: Current Status Of Insurance Business In Nepal
Total & Net Premium
Shikhar Insurance leads in total premium collection with Rs. 500.92 crores. NLG Insurance lags behind in terms of total premium with Rs 237.1 crores. Neco Insurance has Rs 172.5 crores net premium which is higher than the other insurance companies.
The total premium and net premium income of these non-life insurance is shown in the table below:
| Non-Life Insurance Companies | Total Premium (Rs. ‘crores’) | Net Premium (Rs. ‘crores’) |
| Shikhar Insurance | 500.92 | 139.1 |
| Sagarmatha Insurance | 310.63 | 141.11 |
| Neco Insurance | 285.38 | 172.5 |
| Rastriya Beema Company | 264.71 | 34.53 |
| Siddhartha Insurance | 261.67 | 105.62 |
| NLG Insurance | 237.1 | 71.09 |
Source: Unaudited Q4 Report, FY 2078/79
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Net Claim & Total Outstanding Claim
Shikhar Insurance has paid the highest net claim of Rs. 97.5 crores while Rastriya Beema Company has the lowest net claim of Rs. 4.02 crores. Likewise, RBCL has also a lower total outstanding claim of Rs. 35.29 crores while Shikhar Insurance has a higher outstanding claim of Rs. 242.36 crores.
The table below shows the net claim and total outstanding claim of the six non-life insurance:
| Non-Life Insurance Companies | Net Claim (Rs. ‘crores’) | Total Outstanding Claim (Rs. ‘crores’) |
| Shikhar Insurance | 97.5 | 242.36 |
| Sagarmatha Insurance | 95.61 | 175.03 |
| Neco Insurance | 84.36 | 196.43 |
| Siddhartha Insurance | 69.24 | 137.84 |
| NLG Insurance | 55.13 | 130.58 |
| Rastriya Beema Company | 4.02 | 35.29 |
Source: Unaudited Q4 Report, FY 2078/79
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Net Profit
In the FY 2078/79, Neco Insurance has posted Rs. 55.01 crores in profit which is the highest among the non-life insurance companies. Rastriya Beema Company is second with Rs 47.34 crores in profit. Likewise, NLG Insurance has earned Rs. 23.45 crores in profit which is the lowest among the 6 insurance companies.
The net profit of the these insurance is presented in the table below:
| Non-Life Insurance Companies | Net Profit (Rs. ‘crores’) |
| Neco Insurance | 55.01 |
| Rastriya Beema Company | 47.34 |
| Sagarmatha Insurance | 40.22 |
| Shikhar Insurance | 40.14 |
| Siddhartha Insurance | 32.1 |
| NLG Insurance | 23.45 |
Source: Unaudited Q4 Report, FY 2078/79
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Management Expenses
Shikhar Insurance has spent Rs 58.48 crores as the management expenses while RBCL has such expenses of Rs 18.03 crores only.
The management expenses by the insurance companies are shown below:
| Non-Life Insurance Companies | Management Expenses (Rs. ‘crores’) |
| Shikhar Insurance | 58.48 |
| Neco Insurance | 48.98 |
| Sagarmatha Insurance | 41.82 |
| Siddhartha Insurance | 40.59 |
| NLG Insurance | 33.05 |
| Rastriya Beema Company | 18.03 |
Source: Unaudited Q4 Report, FY 2078/79
Number Of Insurance Policies
In the fiscal year 2078/79, Neco Insurance has sold the highest number of insurance policies i.e. 298,820. Rastriya Beema Company, on the other hand, has only issued 51,258 policies.
The number of policies sold by the insurance companies is presented in the table below:
| Non-Life Insurance Companies | Number Of Policies |
| Neco Insurance | 298,820 |
| Shikhar Insurance | 262,598 |
| NLG Insurance | 212,955 |
| Siddhartha Insurance | 179,093 |
| Sagarmatha Insurance | 156,020 |
| Rastriya Beema Company | 51,258 |
Source: Unaudited Q4 Report, FY 2078/79
Earnings Per Share (EPS) & Net worth Per Share
Rastriya Beema Company has the highest Earnings Per Share (EPS) and netowrth per share of Rs 177.58 cores and Rs 1369.6. Shikhar Insurance has the lowest EPS and per share networth of Rs. 17.56 and Rs. 192.8 respectively.
The Earnings Per Share and Net-worth Per Share of the insurance companies is presented in the table below:
| Non-Life Insurance Companies | Earnings Per Share (Rs.) | Networth Per Share (Rs.) |
| Rastriya Beema Company | 177.58 | 1369.6 |
| Neco Insurance | 31.44 | 211.9 |
| Sagarmatha Insurance | 30.16 | 236.01 |
| Siddhartha Insurance | 24.93 | 222.11 |
| NLG Insurance | 17.68 | 213.43 |
| Shikhar Insurance | 17.56 | 192.8 |
Source: Unaudited Q4 Report, FY 2078/79
Related: Earnings Per Share (EPS) Of Non-Life Insurance Companies In Nepal
Market Price Per Share, P/E Ratio & Market Capitalization
Rastriya Beema Company has the highest share price, P/E ratio and market capitalization among the six non-life insurance companies with Rs 13,400, 75.46 and Rs 35.72 Arba respectively. Shikhar Insurance is second with Market cap of Rs 18.45 Arba. NLG Insurance has the lowest share price and market cap with Rs 478 and Rs 6.34 Arba respectively.
| Non-Life Insurance Companies | Market Price Per Share (Rs.) | P/E Ratio | Market Capitalization (Rs. Arba) |
| Rastriya Beema Company | 13,400 | 75.46 | 35.72 |
| Shikhar Insurance | 807 | 45.96 | 18.45 |
| Neco Insurance | 694 | 22.07 | 12.14 |
| Sagarmatha Insurance | 870 | 28.85 | 11.60 |
| Siddhartha Insurance | 543.7 | 21.81 | 7.00 |
| NLG Insurance | 478 | 27.04 | 6.34 |
Source: Unaudited Q4 Report, FY 2078/79
Note: The share price is of Ashad’s end, 2079 BS. The P/E ratio is calculated by dividing the share price by the EPS of insurance companies maintained at Ashad end, 2079 BS . The market cap is computed by multiplying the listed shares at end of Ashad, 2079 BS and the share price. At present, the numbers may vary.
Top 6 Non-Life Insurance in Nepal: Comparative Study
The financial comparison is also summarized in the table below:
| Financial Indicators | Neco Insurance | NLG Insurance | Rastriya Beema Company | Sagarmatha Insurance | Shikhar Insurance | Siddhartha Insurance |
| Paid-up Capital (Rs. ‘crores’) | 174.98 | 132.66 | 26.66 | 133.36 | 228.6 | 128.8 |
| Reserve & Surplus (Rs. ‘crores’) | 48.73 | 31.11 | 338.52 | 46.95 | 70.97 | 31.26 |
| Insurance Fund (Rs. ‘crores’) | 137.44 | 114.22 | 266.66 | 122.48 | 141.16 | 116.83 |
| Total Investments (Rs. ‘crores’) | 448.31 | 236.32 | 636.47 | 345.72 | 405.61 | 354.89 |
| Total Premium (Rs. ‘crores’) | 285.38 | 237.1 | 264.71 | 310.63 | 500.92 | 261.67 |
| Net Premium (Rs. ‘crores’) | 172.5 | 71.09 | 34.53 | 141.11 | 139.1 | 105.62 |
| Net Claim (Rs. ‘crores’) | 84.36 | 55.13 | 4.02 | 95.61 | 97.5 | 69.24 |
| Total Outstanding Claim (Rs. ‘crores’) | 196.43 | 130.58 | 35.29 | 175.03 | 242.36 | 137.84 |
| Net Profit (Rs. ‘crores’) | 55.01 | 23.45 | 47.34 | 40.22 | 40.14 | 32.1 |
| Management Expenses (Rs. ‘crores’) | 48.98 | 33.05 | 18.03 | 41.82 | 58.48 | 40.59 |
| Number Of Policies | 298,820 | 212,955 | 51,258 | 156,020 | 262,598 | 179,093 |
| Earnings Per Share (Rs.) | 31.44 | 17.68 | 177.58 | 30.16 | 17.56 | 24.93 |
| Networth Per Share (Rs.) | 211.9 | 213.43 | 1369.6 | 236.01 | 192.8 | 222.11 |
| Market Price Per Share (Rs.) [Ashad end, 2079 BS] | 694 | 478 | 13400 | 870 | 807 | 543.7 |
| P/E Ratio | 22.07 | 27.04 | 75.46 | 28.85 | 45.96 | 21.81 |
Source: Unaudited Q4 Report, FY 2078/79
Note :
The above figures are based on the un-audited quarterly report published by the respective insurance companies. Investors are advised to take other things into consideration along with this report while making the investment decisions. The numbers may vary after the final audit.
Which insurance company do you prefer? Feel free to share your views in the comment section.
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कमाई राम्रो हुदो रहेछ
I prefer to invest in Neco Insurance, kindly advice me what will be in the future?
I totally agree with you, I too am planning to invest in neco insurance becausee I see it has been growing massively, and wherever I go I see neco insurance , and the best part is it is growing year on year and the report of Q4 is quite impressive.
I am a Licenced Surveyor, I want to be listed on these insurance company. But, I am not getting any opportunity, How shall I proceed?