Decline in Net Insurance Premium: Higher Earnings from Other Sources

Prabhu Insurance has reported a 10.53% increase in net profit, reaching Rs. 120.49 million by the second quarter of the current fiscal year. In the same period last year, the company had earned a net profit of Rs. 108.61 million.

Financial Highlights

🔹 Net Profit: Rs. 120.49 million (10.53% growth)
🔹 Net Insurance Premium: Rs. 282.56 million (34.18% decline)
🔹 Investment and Loan Income: Rs. 41.52 million (14.55% growth)
🔹 Commission Income: Rs. 118.21 million (82.17% growth)
🔹 Paid-Up Capital: Rs. 1.44 billion
🔹 Earnings Per Share (EPS): Rs. 16.66 (Increase of Rs. 0.87)
🔹 Net Worth Per Share: Rs. 226

Despite a 15.60% decline in total income, the company's net profit grew due to significant increases in commission income and earnings from investments and loans.
🔸 Commission Income – 82.17% increase
🔸 Investment & Loan Income – 14.55% increase

The net insurance premium saw a significant decline. In the second quarter of the previous fiscal year, it was Rs. 429.28 million, whereas this year, it dropped to Rs. 282.56 million, marking a 34.18% decline.

Even though net insurance premium decreased, Prabhu Insurance successfully generated higher income from other sources, boosting its overall profitability. The significant rise in investment & loan income, along with commission earnings, played a major role in driving profits. This indicates a stable financial position for the company.