IME Life Insurance Company Limited has released its unaudited financial report for the third quarter of the current fiscal year 2081/82. According to the report, the company earned a net profit of Rs. 36.63 crores, which is a 10.49% increase compared to the same quarter last year, when it had earned Rs. 33.15 crores.
The company collected a total net premium of Rs. 3.60 Arba this quarter, which is 15.65% more than the Rs. 3.11 Arba it collected during the same period last year. In addition, income from investments, loans, and other sources rose slightly by 2.74% to reach Rs. 98.77 crores.
IME Life’s life insurance fund has also grown significantly. It increased by 26.69% to Rs. 12.55 Arba, indicating that the company’s overall business and coverage are expanding. Total investments reached Rs. 16.69 Arba, which is a 9.70% rise from the previous year.
Despite these positive results, the company’s retained earnings saw a sharp drop of 63.06%, going down from Rs. 1.15 Arba to just Rs. 42.56 crores. Other components of equity also decreased by 14.03%.
The company’s earnings per share (EPS) improved, reaching Rs. 9.77 compared to Rs. 8.84 last year. However, the net worth per share fell by 10.33%, now standing at Rs. 132.67. The price-to-earnings (PE) ratio is currently at 47.33, which indicates the stock may be highly valued in the market.
The paid-up capital and share premium remained unchanged at Rs. 5 Arba and Rs. 52.38 crores, respectively. Meanwhile, the company increased its catastrophe reserve by 18.96%, reaching Rs. 22.98 crores.
On the expense side, the company paid Rs. 3.51 Arba in net insurance claims, which is 19.72% more than the previous year. It also spent Rs. 33.59 crores on commissions, a 7.75% rise compared to last year.
Overall, IME Life Insurance showed strong business growth and higher earnings, but declining retained earnings and rising expenses are points of concern for investors.
