Neco Insurance Company Limited (NIL) (Last update 8/16/2017)

Transcription

1 Neco Insurance Company Limited (NIL) (Last update 8/16/2017) Introduction Neco Insurance Ltd. is a limited liability company registered under the Companies Act, 2021 BS. It was established on 1 st Poush, 2051(16th December, 1994). It has been operating general insurance business in Nepal since 17 th Jestha, 2053 (30th May, 1996) as per the license granted by Insurance Board of Nepal. The registered office of the company is at Anamnagar, Kathmandu and it is operating its business through 27 service outlets nationwide. Figures Basic Information Category Non-Life Insurance No of Branches 23* No of Employees 167* *Based on annual report 2015/16 Board of Directors Postion Chairman Director Director Director Director Name Mr. Ramesh Kumar Niraula Mr. Kabi Raj Adhikari Mr. Indra Bahadur Thapa Mr. Bhanubhakta Pokhrel Mr. Tirtha Raj Parajuli Management Position Chief Executive Officer Name Mr. Bishwo Ram Timila

2 Neco Insurance Company Limited s Stock Summary Last Traded Price (Rs.) 1126 EPS (Q4 73/74) P/E Ratio (Q4 73/74)* Weeks Low Weeks High 2300 Total Listed Shares 7,128,957 Paid Up Value (Rs.) 100 Total Paid Up Value (Rs.) 712,895,700 Market Capitalization (Rs.) 8,027,205,582 * based on Q4 earnings and Last Traded Price

3 Technical Analysis Notes: 9(blue), 30 (green), 52(yellow) are exponential moving averages (EMA). The 9 day EMA and 30 day EMA are above the 52 day EMA; however, they are lying extremely close to each other. RSI is at a neutral zone and moving downwards. MACD is also moving downwards Price adjustment was on 12/29/2016.

4 NIL s Financial Ratios of Q4 73/74 Key Stats Q4 73/74 Return on Asset (TTM) % 12.22% Return on Equity (TTM) % 36.85% EPS (Annualized) NWPS Total Assets Per Share Gross Premium/Total Premium 54.8% Net Profit/Total Premium 15.4% Net Profit/Income 56.6% Management Expenses/Net Profit 76.7% Total no. of Claims/Total no. of Policies 1.2% Total Outstanding Claims/Total Premium 22.1%

5 NIL s Q4 73/74 Financial Report Analysis Balance Sheet Q4 73/74 Q4 72/73 Growth SOURCES OF FUNDS 1,234, , % Paid up Capital 712, , % Reserve & Surplus 236, , % Insurance Fund 285, , % Catastrophe Reserve - - Long Term Loan & Borrowings - - Call in Advance - - USES OF FUNDS 1,234, , % Fixed Assets (Net) 199,196 28, % Long Term Investments & Loans 264, , % Net Current Assets 770, , % Expenditure to the extent Not Written off Loss Transferred From Income Statement - - DETAILS OF NET CURRENT ASSET - - CURRENT ASSETS, LOANS & ADVANCES 1,826,991 1,050, % Cash and Bank Balance 133, , % Short Term Investments & Loan 1,371, , % Other Assets 321, , % CURRENT LIABILITIES AND PROVISIONS 1,056, , % Current Liabilities 181,809 33, % Provision for Unexpired Risk 374, , % Provision for Outstanding Claims 176, , % Other Provision 323, , % Income Statement Q4 73/74 Q4 72/73 Growth INCOME 371, , % Transferred from Revenue Account 330, , % Income from Investment, Loans & Others 35,027 18, % Provision Written Back 5,772 - Other Income - - EXPENSES 161,154 83, % Management Expenses 17,825 11, % Amortization Expenses Share Related Expenses - - Other Expenses 2,710 - Provision for Losses 17,233 - Provision for Staff Housing - - Provision for Staff Bonus 30,286 18, %

6 Adjusted Income Tax 92,778 54, % NET PROFIT 210, , % Notes from quarterly report Paid-up capital had increased by 120% from Q4 72/73 to Q4 73/74. Reserve & Surplus increased by 48.6% Insurance Fund increased by 56.4% Fixed Assets (Net) increased by 588.1% Short term investment and loans increased by 134.8% Provision for unexpired risk increased by 75.1% Transferred from Revenue Account increased by 77.1% Income from Investment, Loans & Other increased by 88.8% Management expenses increased by 92.9% Net Profit increased by 66.7%.

7 Previous 5 years data (Q4) Figures of Q4 from previous 5 years Balance Sheet (Rs. 000) Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Paid up Capital 712, , , , ,222 Reserve & Surplus 236, , ,417 70,470 50,330 Insurance Fund 285, , ,798 75,243 54,905 Income Statement (Rs. 000) Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Income 371, , ,463 72,092 63,384 Expenses 161,154 83,555 42,299 31,119 25,912 Net Profit 210, , ,164 40,973 37,472 KEY STATS Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Total Premium (Rs. 000) 1,362, , , , ,409 Total no. of Policies 204, ,254 51,181 44,123 39,342 Total no. of Renewed Policies 27,390 20,054 16,847 11,585 9,635 Total Claim Amount (Rs. 000) 409, , , , ,082 Total no. of Claims 2,525 2,997 1,466 1,256 2,657 Provision for Unexpired Risk (Rs. 000) 301, , , , ,746

8 Growth Chart (Balance sheet items) 800, , , , , , , ,000 0 Balance Sheet Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Paid up Capital Reserve & Surplus Insurance Fund Growth Chart (Income statement items) 400, , , , , , ,000 50,000 0 Income Statement Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 Income Expenses Net Profit

9 Growth Chart (Key Stats) 250,000 Key Stats 200, , ,000 50,000 Total no. of Policies Total no. of Renewed Policies Total no. of Claims 0 Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70 1,600, Key Stats 1,400, ,200, ,000, , , , Provision for Unexpired Risk (Rs. 000) Total Claim Amount (Rs. 000) Total Premium (Rs. 000) 200, Q4 73/74 Q4 72/73 Q4 71/72 Q4 70/71 Q4 69/70

10 Summary Established in December 1994, Neco Insurance has been operating general insurance business in Nepal since May The registered office of the company is at Anamnagar, Kathmandu and it is operating its business through 27 service outlets nationwide. On the technical analysis side, the 9 day EMA and 30 day EMA are lying extremely closely to the 52 day EMA. RSI is at a neutral zone and is moving downwards. MACD is also moving downwards. Price adjustment was on 12/29/2016. Looking at the financials, Paid-up capital has had a 120% growth from Q4 72/73 to Q4 73/74. Reserve & Surplus increased by 48.6%; Insurance Fund increased by 56.4%; Fixed Assets (Net) increased by 588.1%; Short term investment and loans increased by 134.8% and Provision for unexpired risk increased by 75.1%. Management Expenses increased by 92.9%. Net Profit increased by 66.7%.