ILI: Fundamental Analysis

IME Life Insurance Company Limited is a company listed in NEPSE as ILI and started its operation from Bhadra 1, 2074 (August 17, 2017) offering a range of individual and group insurance solutions to meet the protection, saving, and investment needs of its customers. The Company has a paid up capital of Rs. 5,00,00,00,000. The promoters have contributed to 70% of paid up capital whereas the general public have contributed to 30% of it. Let's look at the fundamental indicators of ILI for the past three years in its 4th quarter financial reports:

ILI's net profit has shown consistent growth, increasing from Rs. 51.46 crore in FY 2080/81 to Rs. 58.33 crore in FY 2081/82 and further to Rs. 58.42 crore in FY 2082/83. EPS also increased from Rs. 10.29 to Rs. 11.67 and then Rs. 11.68 over the same period and P/E ratio has fallen from 44.02 to 34.92. The company's net worth per share has declined from Rs. 145.59 in FY 2080/81 to Rs. 138.58 in FY 2081/82 and Rs. 135.66 in FY 2082/83. The PBV ratio, meanwhile, remained relatively stable moving from 3.11 to 3.07 and then 3.13. 

The most significant improvement is visible in net earned premium. It increased from Rs. 4.52 arba in FY 2080/81 to Rs. 5.49 arba in FY 2081/82 and reached Rs. 7.46 arba in FY 2082/83. ILI’s Investments also grew significantly from Rs.15.34 arba to Rs. 17.54 arba and reached to Rs.23.28 arba in the same time frame. Investment jumped approximately 32.8% in FY 2082/83. Investment income is an important component of long-term profitability for any life insurance company. Overall, ILI's rising premiums, expanding investment portfolio, stable earnings, and declining P/E ratio provide positive signals.