In a recent financial disclosure, Himalayan Life Insurance Limited (HLI) unveiled its third-quarter fiscal report, revealing a 7.99% decrease in net profit compared to the same period last year. The company’s net profit dwindled to Rs. 43.54 crores, contrasting with the Rs. 47.32 crores recorded in the corresponding quarter of the previous fiscal year.
Despite the dip in net profit, HLI observed an 8.41% surge in net premiums during the quarter, reaching Rs. 12.02 Arba in Q3 FY 2080/81. Additionally, the company generated Rs. 4.12 Arba from income derived from investments, loans, and other financial activities.
However, the quarter also saw a significant 14.90% rise in net claims, totaling Rs. 13.97 Arba. Nonetheless, commission expenses decreased by 6.34%, amounting to Rs. 99.81 Crores.
HLI maintains a solid financial foundation with a paid-up capital of Rs. 8.02 Arba and substantial reserves, including Rs. 1.32 Arba in retained earnings, Rs. 19.92 Crores in other equity, and Rs. 41.62 Crores in catastrophe reserves.
Key financial metrics for HLI include an annualized earnings per share (EPS) of Rs. 7.24 and a net worth per share of Rs. 124.25. The Price-to-Earnings (P/E) ratio stands at 54.64 times, reflecting the company’s financial standing despite the decline in net profit.
The company’s solvency ratio stands at 1.66, indicating a stable financial position.
The quarter also witnessed a notable decrease in the number of policies issued by HLI, dropping by 32.21% compared to the immediate previous year quarter.