Life insurance companies in Nepal posted a combined net profit of over Rs 4.88 billion in the first nine months of the current fiscal year, reflecting an 11.93 percent year-on-year increase.

According to unaudited third-quarter financial statements published by 14 life insurers, only two companies reported a decline in net profit, while the remaining 12 saw gains. In the same period last fiscal year, their total net profit stood at over Rs 4.36 billion.

National Life Insurance Company and Sun Nepal Life Insurance were the only two firms to record lower profits. National Life’s net profit dropped by 37.10 percent year-on-year to Rs 15.4 million, down from Rs 24.5 million in the same period last year. Its total income also fell from over Rs 12.44 billion to Rs 11.39 billion. However, the company’s net premium income rose slightly from Rs 7.69 billion to Rs 7.73 billion.

Net Profits of Life Insurance Companies

Companies	Net Profit (Rs Thousands) by Q3, FY 2024/25	Net Profit (Rs Thousands) by Q3, FY 2023/24	Changes (%)
Asian	334,716	209,844	59.51
Reliable Nepal	465,796	340,293	36.88
Surya Jyoti	295,750	224,230	31.9
Metlife	345,114	270,451	27.61
Citizen	357,648	281,303	27.14
Life Insurance Corporation (Nepal)	236,022	192,425	22.66
Sanima Reliance	337,657	304,831	10.77
IME	366,333	331,560	10.49
Nepal	652,223	600,367	8.64
Himalayan	475,400	435,429	8.49
National	408,522	388,379	5.19
Prabhu Mahalaxmi	270,723	268,920	0.67
Sun Nepal	328,997	493,668	-33.36
Rastriya Jeevan Beema Company	15,419	24,514	-37.1
Total	4,890,320	4,366,214	11.93

(Source: Financial Statements of Respective Companies)

National Life Insurance Company remains the only life insurer in Nepal that has yet to issue shares to the general public. The company says it is working towards strengthening its financial position and plans to go public soon.

Resham Poudel, head of the company’s finance department, said the decline in profit was due to reduced returns on investments amid an economic slowdown and falling interest rates.

“About 80 percent of our funds are invested in various sectors, and returns have been low this year,” he said. Poudel expressed optimism that profits would improve as the economy recovers. He also noted that the company has completed audits up to FY 2017/18 and plans to complete the audit for FY 2018/19 within a week.

Among the 14 companies, Asian Life Insurance recorded the highest percentage increase in profit. Its net profit surged by 59.51 percent to Rs 334.7 million, up from Rs 209.8 million in the same period last fiscal year. The company’s total income also grew from Rs 8.6 billion to Rs 9.23 billion.

In absolute terms, Nepal Life Insurance reported the highest net profit. It earned Rs 652.2 million, an 8.64 percent rise compared to Rs 600 million in the same period last year.