Premier Insurance shows an astounding rise of 722% in reserve due to FPO; Per Share Earning stood at Rs 30.48

Premier Insurance has published the 3rd quarter report for the current fiscal year. 

As per the report, the company has earned a net profit of Rs 13.35 crores. The same was Rs 10.30 crores in the corresponding quarter of the previous fiscal year. An Impressive growth of 29.95% has been shown by the company. PIC currently has an EPS of Rs 30.48.

The company's general reserve has escalated to massive Rs 70.45 crores, from merely Rs 8.56 crores last year. This is a tremendous growth of 722%. The premium collected from the FPO has contributed for the rise in reserve. Moreover, the Insurance fund and disaster fund have also surged noticably. PIC now has a strong networth per share of Rs 301.76.

The Company's income from net premium has increased to Rs 62.14 crore from Rs 57.33 crore at the end of Q3 this year, its income from reinsurance commission has also increased to Rs 12.48 crore. Similarly, the company has paid a net claim of Rs 29.87 crores, up from Rs 17.99 crores last year. Company's fee for agent has however decreased slightly. 

Premier Insurance's total premium collection has increased to Rs 1.13 arba, up from Rs 1 arba last year. whereas, number of policies has increased to 1.46 lakh from 1.34 lakh last year.  

PIC still have 3,820 claims worth Rs 1.08 arba to be paid. 

Its current paid up capital stands at Rs 58.40 crore(after the adjustment of FPO and 13.52% bonus share). PIC needs to hike its paid-up capital to Rs 1 arba, to meet the insurance board's directives.  

Major Indicators :

Earning Per Share  : Rs 30.48

P/E Ratio                :  45.23 times

Networth per Share: Rs 301.76