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thanks rajesh ji, for imformation of 2 insurance copany. If it's possible! Plz provied us same indicature & data about Alince insurance.

Thanks rajeshji..

ThanQ Every body 4 analysis...

scrip ji and SHARE GAINER JI,

Shikhar Insurance:

Combined Ratio:

(Rs in 000)

Combined Ratio: Claims settled (326319) + yet to be settled (106589) + provisioning for not-ended yet risks (173209) and expenses (136333) /Gross Premium Earned (922976) = 742270/922976 = 0.80. I think this is a very good ratio.


The Combined Ratio is better than Neco, but the price is about 3 times higher than Neco. This factor also should be considered.

Key financial indicators of Shikhar are as below:

1. EPS 53.75, 2. P. E. Ratio 7.55 3. Net Worth/per share 214, and 4. Total assets/per share 655.

Please make comparison yourselves and decide.

Thank you and regards,

Source for Shikhar data: http://www.sharesansar.com/viewannouncements.php?id=15948

Rajeshji, yr Combined Ration (example) is valuable advice. Please I myself too would like to request as Scripji has for Shikar.
Regards.

hello rajesh ji, can you provide me the same indicator (combined ratio) for shikhar insurance. what are your views abt this share??

Thanks rajesh ji,

I only took the decision after proper study and analysis
I bought some and will add more after tihar......

Big Bull Ji,

It is highly complicated to read and understand the financial statements of Insurance Companies. However, for ordinary investors/traders looking at the following indicators will help to have some idea about the company. They are:

1. EPS, 2. P. E. Ratio, 3. Net Worth/per share, and 4. Total assets/per share.

For those who like to go into details, it is necessary to understand the critical factors to go into. They are:
1. Income Statement,
2. Profit-loss (includes premium income and investment income),
3. Integrated Income- expenditure, and
4. Other (Only premium income and claim settlement + claim yet to be settled). (Please download a financial statement of an insurance company and read it critically to have good idea on the above mentioned factors.)

Based on the above figures, we have to calculate, If the company has not calculated already, three ratios. They are:
1. Loss Ratio (Loss Adjustments/Premiums Earned),
2. Expense Ratio ( Underwriting Expenses / Net Premiums Written ) and,
3. Combined Ratio ( Incurred Losses or claims settled, to be settled + Expenses/Earned Premium).

For me, I do not go into so many details regarding ratios. I see the basic indicators such as EPS and other three. And, I calculate the Combined Ratio. If the combined ratio is less than 1, it is considered ok. If it much less than 1, that is better.

The health of Neco Insurance Company could be reflected through the following facts.

1. EPS 28, 2. P. E. Ratio 4, 3. Net Worth/per share 178, and 4. Total assets/per share 459.

Combined Ratio: Claims settled + yet to be settled + provisioning for not-ended yet risks and expenses/Premium Earned = 356159/412409 = 0.86. I think this is a very good ratio.

For Neco data source: http://www.sharesansar.com/viewannouncements.php?id=15765

Please give due considerations to inputs from other friends also.

Note: I have copied some qualitative information here from my previous post at: http://www.nepalsharemarket.com/JambForum/Default.aspx?postid=60608#60608

I am talking about neco insurance......check out its financials & price, compare it with others.....isnt it underpriced ?

I have been following this company for quite some time.......and i thought it is underpriced and i bought some.....
One interesting thing is its price was above 250 just few months back but a group of investors who trade from broker 20 manipulated it to 140 by matching transactions....
After,that they bought thousands of share.......
I bought because its price will go up......the reasons are:-
1. It is underpriced.....so price is likely to go up....
2. Even if the price wont appreciate naturally, the same investors who manipulated bear operation will do it in a reverse manner i.e. they will do mutual transactions and raise its price ......

So, it is best to buy now.....what do u say ?