नेपाल पुनर्बीमा कम्पनी लिमिटेडको पौष मसान्त २०८२ को त्रैमासिक वित्तीय विवरणNepal Reinsurance Co. Ltd.'s Quarterly Financial Results for Poush End 2082

Quarterly Financial Results for quarter ended on 30 POUSH 2082, F.Y. 2082/83 B.S

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Fig in NPR.

Particulars At the end of this Quarter (Unaudited) At the end of Immediate Previous Year (Unaudited)

Assets:

Goodwill & Intangible Assets	974,118	551,498
Property and Equipment	582,171,617	590,421,230

Investment Properties - -

Deferred Tax Assets 186,656,174 169,983,051

Investment in Subsidiaries - -

Investment in Associates - -

Investments	18,841,940,696	21,491,098,565
Loans	140,601,287	103,307,762
Reinsurance Assets	7,119,773,941	2,996,507,762
Current Tax Assets (Net)	1,514,510,490	1,089,789,575
Insurance Receivables	5,816,123,792	7,452,633,962
Other Assets	3,399,457,822	95,304,869
Other Financial Assets	398,597,030	437,856,034
Cash and Cash Equivalents	713,281,669	1,047,079,201
Total Assets	38,714,088,635	35,474,533,509

Equity:

Share Capital 13,422,187,078 13,422,187,078

Share Application Money Pending Allotment - -

Share Premium - -

Special Reserve	4,921,649,024	4,921,649,024
Catastrophe Reserves	427,611,631	427,611,631
Retained Earnings	(7,051,394,235)	933,738,217
Other Equity	783,397,642	822,301,595
Total Equity	12,503,451,141	20,527,487,545

Liabilities:

Provisions	1,410,039,673	1,455,401,700
Gross Insurance Contract Liabilities	22,338,985,320	10,439,124,964

Deferred Tax Liabilities - -

Insurance Payable 1,757,884,432 2,366,612,111

Current Tax Liabilities (Net) - -

Borrowings - -

Other Liabilities	700,957,239	681,934,317
Other Financial Liabilities	2,770,830	3,972,872

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Fig in NPR.

Particulars Current Year This Quarter Current Year Up to this Quarter (YTD) Corresponding Previous Year This Quarter Corresponding Previous Year Up to this Quarter (YTD)

Net Profit/(Loss) For The Year	(१२३,५४९,७३८)	(७,९८५,१३२,४५२)	४६९,३९४,१८९	५३२,६९०,९६१
Other Comprehensive Income	(३८,९०३,९५३)	(३८,९०३,९५३)	(१०,६७३,६४५)	(१,२९८,३५०)
Total Comprehensive Income	(१६२,४५३,६९२)	(८,०२४,०३६,४०५)	४५८,७२०,५४४	५३१,३९२,६११

OTHER DETAILS

Particulars Current Year Up to this Quarter (YTD) Previous Year Up to this Quarter (YTD)

5. Total Gross Outstanding Claim including IBNR and IBNER (Amount)	१५,५२८,२९७,९६३.६५	४,१६९,६५८,६७९.००
6. Net Outstanding Claim including IBNR and IBNER (Amount)	९,२४७,५६१,७५१.४३	१,२४३,१५५,५४६.००
8. Unearned Premium Reserve (Amount)	६,८१०,६८७,३५६.७९	६,१९१,२७३,३५४.००
11. Long Term Investments (Amount)	४,१६०,१७७,९८८.८५	३,६७१,६८६,०५९.००
12. Short Term Investments (Amount)	१४,६८१,७६२,७०७.२५	१८,०४१,१८३,१३०.००
13. Direct Premium (Amount)	५,०५६,४३१,५३१.२०	४,७३९,५६८,९८२.००
14. Investment in Cost (Amount)	१८,५४१,१५६,९११.०७	२१,५७४,२३७,४०४.००

Note:

Above Interim financial statement has comply with the requirements of Nepal Accounting Standard - 34 "Interim Financial Reporting" wherever applicable including directives issued by Nepal Insurance Authority. Detailed interim report has been published in our website (www.nepalre.com.np).

Above financial statements includes provisional figures based on latest data and information received by the company as Statement of Accounts(SOA) are still pending.

Disclosure as per Section 84(3) of Insurance Act, 2079

1. Solvency Ratio related disclosure:

As per latest audited financial statements of the company, the solvency ratio as on Ashad end, 2080 is 3.65, which is higher than the regulatory requirement i.e. 1.5 times.

2. Reinsurance related disclosure:

The company has arranged for adequate and appropriate retrocession program based on the directives issued by the Nepal Insurance Authority and strategy of the company.

3. Details regarding legal proceeding:

There are a few numbers of legal proceedings from the company against tax assessment of previous fiscal years from the Large Taxpayer's Office.

4. Corporate Governance:

The company is conducting its activities in accordance with the provision of Insurance Act, Insurance Regulation, Directives and Circulars issued by Nepal Insurance Authority, the internal control mechanism of the company and following the suggestions received from the internal and external auditor of the company and Nepal Insurance Authority.

5. Any other disclosure as deemed relevant

None

Disclosure as per Securities Registration and Issuance Regulation 2073

Related to sub-Regulation (1) of Regulation (26)

1. Financial Statements Quarter - II (FY 2082/83)

A. Quarterly Statement of Financial position and Statement of Profit or Loss

The company has complied with this requirement. The financial statements are prepared and published in accordance with Nepal Accounting Standard (NAS) 34 "Interim Financial Reporting" and directives issued by Nepal Insurance Authority.

Total Liabilities	26,210,637,495	14,947,045,964
Total Equity and Liabilities	38,714,088,635	35,474,533,509

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Fig in NPR.

Particulars Current Year Up to this Quarter (YTD) Corresponding Previous Year Up to this Quarter (YTD)

This Quarter This Quarter

Income:

Gross Earned Premiums	2,283,907,826	4,097,680,311	2,461,286,015	4,377,400,850
Premiums Ceded	(290,001,257)	(451,273,263)	(234,242,009)	(375,776,049)
Net Earned Premiums	1,993,906,570	3,646,407,048	2,227,044,006	4,001,624,801
Commission Income	249,517,101	290,127,551	45,412,289	311,914,860
Other Direct Income	133,670,516	330,267,024	260,892,163	627,445,382

Net Gain/(Loss) on Fair Value Changes - - - -

Net Realized Gains/(Losses) - - - -

Other Income	9,080,695	8,591,601	(11,988,369)	(12,477,344)
Total Income	2,386,174,882	4,275,393,224	2,521,360,089	4,928,507,699

Expenses:

Gross Claims Paid 2,421,467,540 3,643,719,627 1,415,189,663 2,334,633,641

Claims Ceded - - - -

Gross Change in Contract Liabilities	(361,181,815)	10,941,109,137	1,108,984,763	1,526,592,954
Change in Contract Liabilities Ceded to Reinsurers	(278,405,625)	(3,799,837,386)	(1,360,445,788)	(1,336,239,950)
Net Claims Incurred	1,781,880,100	10,784,991,377	1,163,728,638	2,524,986,645
Commission Expenses	524,347,449	1,213,737,020	518,566,490	1,151,148,660
Service Fees	13,007,850	32,112,971	13,626,695	32,818,327
Other Direct expenses	161,948,013	162,125,738	43,618,634	297,573,903
Employee Benefits Expenses	15,730,475	41,750,080	91,807,356	129,503,765
Depreciation and Amortization Expenses	4,164,357	8,328,713	3,829,629	7,776,054

Impairment Losses - - - -

Other Operating Expenses	8,445,261	17,006,350	15,274,564	22,987,029
Finance Cost	201,115	473,426	463,330	986,028
Total Expenses	2,509,724,620	12,260,525,676	1,850,915,336	4,167,780,411
Net Profit/(Loss) For the Year Before Share of Net Profits of Associates Accounted for Using Equity Method and Tax	(123,549,738)	(7,985,132,452)	670,444,753	760,727,288

Share of Net Profit of Associates accounted using Equity Method - - - -

Profit Before Tax	(123,549,738)	(7,985,132,452)	670,444,753	760,727,288
Income Tax Expenses - -	201,050,564	228,036,327
Net Profit/(Loss) For the Year	(123,549,738)	(7,985,132,452)	469,394,189	532,690,961

Earnings Per Share

Basic EPS	(59.49)	(59.49)	3.97	3.97
Diluted EPS	(59.49)	(59.49)	3.97	3.97

The quarterly financial statements for third quarter have been published along with this report. The financial statement has been prepared in compliance with Nepal Accounting Standard - 34 "Interim Financial Reporting" and Nepal Financial Reporting Standards (NFRS) issued by the Nepal Accounting Standards Board (ASB) and directives and circulars issued by Nepal Insurance Authority and required disclosures as per Securities Board of Nepal. The previous period figures have been regrouped and adjusted wherever required.

B. Major Financial Ratios

Earnings Per Share	(59.49)	93.16
P/E Ratio	(22.04)	288.43

2. Management Analysis

Company has been able to position itself as preferred reinsurer within the country and also has been able to demonstrate itself as trustworthy reinsurer among international brokers and reinsurer. In the current quarter investment return of the company is affected due to decrease in the interest rate offered by the bank and financial institutions As an investment diversification objective company has plan to increase its investment in alternatives as per Nepal Insurance Authority directive. The decrease in economic activity within the country and economic stress scenario worldwide has affected the growth of the insurance industry.

3. Details regarding legal proceedings

There are a few numbers of legal proceedings from the company against tax assessment of previous fiscal years from the Large Taxpayer's Office.

4. Analysis of company's share transactions

Maximum share price: NPR 1423.9 Total number of transactions 25792

Minimum share price: NPR 1211 Total number of shares traded: 4,311,299.00

Closing share price: NPR 1311 Total number of transaction days: 55 Days

*Source: As published in the website of Nepal Stock Exchange (www.nepalstock.com.np)

5. Problems and Challenges

a. Slow growth of industrial activities.

b. Regular decrease in interest rate offered by the bank and financial institutions

c. Impact of CAT risk and its upcoming exposure.

d. Inadequate technical and actuarial manpower for CAT risk modeling.

e. Unstable political environment of the country.

f. Delay in receiving Statement of Accounts (SOAs) from cedent companies.

6. Strategies initiated by Management to solve the problems and challenges:

a. Diversifying investment portfolio into alternative asset classes.

b. Establish and cause to arrange insurance pools for management of reinsurance and claim payment of various risk exposure.

c. Renegotiating retrocession arrangements to cap net claim exposure.

d. Continuous Training and development program for underwriting and actuarial staff.

e. Providing appropriate reinsurance coverage to national insurance companies to cater their reinsurance needs.

f. Enhancing public relation with the market and cedent companies.

g. Accelerating collection of pending SOAs from cedent companies.

7. Corporate Governance

The company is conducting its activities in accordance with the provision of Insurance Act, Insurance Regulation, Directives and Circulars issued by Nepal Insurance Authority, the internal control mechanism of the company and following the suggestions received from the internal and external auditor of the company and Nepal Insurance Authority.

8. Declaration by Chief Executive Officer on truthfulness of information

I, hereby, declare that all the information provided in this document is true, complete and factual and that I take personal responsibility for any deviations thereof. I also declare that the Company's information or data, that assist investors in making informed investment decisions, have not been misstated in any way.