1.Introduction:
Name: Sagarmatha Insurance Co. Ltd.
Business General Insurance
Establishment 1996 A.D
Executive Director Mr. Krishna Bahadur Basnyat
Chairman Mr. Ram Krishna Manandhar
Branches including H.O and Contact offices 17
Head Office Surakshan Bhawan, Bhagawati Marg, Naxal
Stock code (Nepse) HGI
2.Ownership Pattern:
Domestic Ownership 80%
-Promoters 60%
-General public 20%
Foreign Ownership 20%
NOTE: The pattern of ownership is based upon latest published annual report(AR 2066/67).
3.List of Prominent Shareholders:
Shareholders Shareholding %
Ceylinco Insurance P.L.C 20
Salt trading Corporation 6.08
National Finance Co. Ltd. 5.88
Divya Mani Rajbhandari 5.10
Ashok Kumar Todi 2.94
Narendra Kumar Agrawal 2.94
Overseas Trading Co. Pvt. Ltd. 2.75
Ramkrishna Manandhar 1.96
Bhajuratna and Co. Pvt. Ltd. 1.96
Himal and Co. Pvt. Ltd. 1.96
Jyoti and Co. Pvt. Ltd. 1.96
Ramlal Dhapi Devi Charity Trust 1.68
Lokmanya Golcha 1.49
Sekhar Golcha 1.23
4.Equity Analysis:
52 Week High Price: Rs.380
52 Week Low Price: Rs. 290
Last Trading Price(26.04.2012): Rs.300
Paid-up Capital: 12.92 Cr.
Market Capitalization: 38.76 Cr.
EPS(annualized)*: Rs. 27.78
P/E Ratio*: 5.56
Net Worth per Share*: Rs. 282.11
P/B.V Ratio*: 1.06
*Based on unaudited second Quarter 2068/69.
5.Performance Highlights:
Particulars 2062/63 2063/2064 2064/2065 2065/2066 2066/2067
Paidup Capital (NRS Cr.) 5.61 7.85 10.21 10.21 11.23
Net Worth (NRS Cr.) 14.62 13.44 16.25 19.39 27.7
YOY increase in Net Worth (%) - -8.07 20.21 19.32 42.86
No. of Policies Sold 22,625 24,618 24,937 28,885 47,297
Net Profit/ Gross Premium (%) 8.38 5.01 6.25 15.61 13
Employees 86 89 92 87 105
No. of offices 11 11 11 11 13
No. Of Agents 79 95 98 95 108
6.Key Findings:
1. Sagarmatha Insurance Co. Ltd. is the first joint venture company in Nepal to operate General Insurance business.
The Joint Venture Partner of SIC, Ceylinco Insurance Co. Ltd. is the no.1 Insurance Company in Sri Lanka. The Company was placed within the top four General Insurance Companies in Asia, competing with over 1,000 insurance companies at the fourth Asia Insurance Industry Awards Ceremony 2000, held in the Philippines.
2. The company is promoted by the prominent entrepreneurs and leading industrial Groups in Nepal which includes Salt Trading Corporation, Golchha Organisation, Jyoti Group, MC Group, National Finance Co. Ltd, Nepal Construction and Engineering Corporation and other promising entrepreneurs. Moreover, the company is professionally managed by a team of highly experienced and proven executives.
3. Company at a Glance (based on F/Y 2067/68)
Insurance Premium (Gross) (Rs. ‘000) 532,958
Insurance Premium (Net) (Rs. ‘000) 286,473
Total no. of Insurance policies sold 53,571
Renewed Policies 12,902
Net Profit (Rs. 'Cr.) 9.13
4. The annualized value of P/E around 5.56 and price to book value ratio at 1.06 suggests that the stock is dearly priced.
5. The performance of the company in 2nd Quarter 2068/69 as compared to same period in the previous year shows healthy growth in business of the company along with its profitability.
Growth in premium Collection (Net) 25.31%
Increase in total Investment and Lending 17.14%
Increase in Fixed Assets (Net) 13.68%
Increase in net profit (after tax) 14.03%
6. HGI reinsures its policies with different leading reinsurers across the globe. The list of some reinsurers SIC is currently working with as disclosed by the company are as presented hereunder:
1. General Insurance Corporation of India, Mumbai, India
2. Asian Reinsurance Corporation, Bangkok, Thailand
3. B.E.S.T. Reinsurance, Malaysia
4. African Reinsurance Corporation, Mauritius
5. Malaysian Reinsurance, Berhad, Kuala Lumpur, Malaysia
6. F.A.I.R. Non-Life Reinsurance Pool, Turkey
7. Oriental Insurance Company Limited, New Delhi, India
8. Kenya Reinsurance Corporation Ltd., Nairobi, Kenya
7. As disclosed in annual report for F/Y 2066/67, based on sector wise gross premium collection, the performance of each sector appears as presented below:
Category Gross Premium(Rs. '000) Weight (%)
Fire Insurance 99,920 23.19
Marine Insurance 49,656 11.52
Motor Insurance 212,582 49.33
Engineering Insurance 28,797 6.68
Miscellaneous 39,986 9.28
Total 430,941 100
8. The Company has been paying good returns to its shareholders since its coming into operation. The pattern of payment for last few years is shown below:
Year 2063/64 2064/65 2065/66 2066/67
sCash Dividend - 10.68% 10.53% 11.316%
Bonus Share 30% - 10% 15%
Name: Sagarmatha Insurance Co. Ltd.
Business General Insurance
Establishment 1996 A.D
Executive Director Mr. Krishna Bahadur Basnyat
Chairman Mr. Ram Krishna Manandhar
Branches including H.O and Contact offices 17
Head Office Surakshan Bhawan, Bhagawati Marg, Naxal
Stock code (Nepse) HGI
2.Ownership Pattern:
Domestic Ownership 80%
-Promoters 60%
-General public 20%
Foreign Ownership 20%
NOTE: The pattern of ownership is based upon latest published annual report(AR 2066/67).
3.List of Prominent Shareholders:
Shareholders Shareholding %
Ceylinco Insurance P.L.C 20
Salt trading Corporation 6.08
National Finance Co. Ltd. 5.88
Divya Mani Rajbhandari 5.10
Ashok Kumar Todi 2.94
Narendra Kumar Agrawal 2.94
Overseas Trading Co. Pvt. Ltd. 2.75
Ramkrishna Manandhar 1.96
Bhajuratna and Co. Pvt. Ltd. 1.96
Himal and Co. Pvt. Ltd. 1.96
Jyoti and Co. Pvt. Ltd. 1.96
Ramlal Dhapi Devi Charity Trust 1.68
Lokmanya Golcha 1.49
Sekhar Golcha 1.23
4.Equity Analysis:
52 Week High Price: Rs.380
52 Week Low Price: Rs. 290
Last Trading Price(26.04.2012): Rs.300
Paid-up Capital: 12.92 Cr.
Market Capitalization: 38.76 Cr.
EPS(annualized)*: Rs. 27.78
P/E Ratio*: 5.56
Net Worth per Share*: Rs. 282.11
P/B.V Ratio*: 1.06
*Based on unaudited second Quarter 2068/69.
5.Performance Highlights:
Particulars 2062/63 2063/2064 2064/2065 2065/2066 2066/2067
Paidup Capital (NRS Cr.) 5.61 7.85 10.21 10.21 11.23
Net Worth (NRS Cr.) 14.62 13.44 16.25 19.39 27.7
YOY increase in Net Worth (%) - -8.07 20.21 19.32 42.86
No. of Policies Sold 22,625 24,618 24,937 28,885 47,297
Net Profit/ Gross Premium (%) 8.38 5.01 6.25 15.61 13
Employees 86 89 92 87 105
No. of offices 11 11 11 11 13
No. Of Agents 79 95 98 95 108
6.Key Findings:
1. Sagarmatha Insurance Co. Ltd. is the first joint venture company in Nepal to operate General Insurance business.
The Joint Venture Partner of SIC, Ceylinco Insurance Co. Ltd. is the no.1 Insurance Company in Sri Lanka. The Company was placed within the top four General Insurance Companies in Asia, competing with over 1,000 insurance companies at the fourth Asia Insurance Industry Awards Ceremony 2000, held in the Philippines.
2. The company is promoted by the prominent entrepreneurs and leading industrial Groups in Nepal which includes Salt Trading Corporation, Golchha Organisation, Jyoti Group, MC Group, National Finance Co. Ltd, Nepal Construction and Engineering Corporation and other promising entrepreneurs. Moreover, the company is professionally managed by a team of highly experienced and proven executives.
3. Company at a Glance (based on F/Y 2067/68)
Insurance Premium (Gross) (Rs. ‘000) 532,958
Insurance Premium (Net) (Rs. ‘000) 286,473
Total no. of Insurance policies sold 53,571
Renewed Policies 12,902
Net Profit (Rs. 'Cr.) 9.13
4. The annualized value of P/E around 5.56 and price to book value ratio at 1.06 suggests that the stock is dearly priced.
5. The performance of the company in 2nd Quarter 2068/69 as compared to same period in the previous year shows healthy growth in business of the company along with its profitability.
Growth in premium Collection (Net) 25.31%
Increase in total Investment and Lending 17.14%
Increase in Fixed Assets (Net) 13.68%
Increase in net profit (after tax) 14.03%
6. HGI reinsures its policies with different leading reinsurers across the globe. The list of some reinsurers SIC is currently working with as disclosed by the company are as presented hereunder:
1. General Insurance Corporation of India, Mumbai, India
2. Asian Reinsurance Corporation, Bangkok, Thailand
3. B.E.S.T. Reinsurance, Malaysia
4. African Reinsurance Corporation, Mauritius
5. Malaysian Reinsurance, Berhad, Kuala Lumpur, Malaysia
6. F.A.I.R. Non-Life Reinsurance Pool, Turkey
7. Oriental Insurance Company Limited, New Delhi, India
8. Kenya Reinsurance Corporation Ltd., Nairobi, Kenya
7. As disclosed in annual report for F/Y 2066/67, based on sector wise gross premium collection, the performance of each sector appears as presented below:
Category Gross Premium(Rs. '000) Weight (%)
Fire Insurance 99,920 23.19
Marine Insurance 49,656 11.52
Motor Insurance 212,582 49.33
Engineering Insurance 28,797 6.68
Miscellaneous 39,986 9.28
Total 430,941 100
8. The Company has been paying good returns to its shareholders since its coming into operation. The pattern of payment for last few years is shown below:
Year 2063/64 2064/65 2065/66 2066/67
sCash Dividend - 10.68% 10.53% 11.316%
Bonus Share 30% - 10% 15%
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