The net profit of most non-life insurance companies declined in the second quarter of the current fiscal year. According to financial statements published by these companies, nine out of 14 non-life insurers reported lower profits compared to the same period in the previous fiscal year. Among the remaining five companies, three—Sanima GIC Insurance, Prabhu Insurance, and Shikhar Insurance—recorded profits, while two—National Insurance Company Limited and Oriental Insurance—incurred losses.

Nepal Insurance Company Limited experienced the steepest profit decline, with an 82% drop. The company earned Rs 497.7 million in the second quarter of the previous fiscal year, but its profit shrank to Rs 86 million in the same period of the current fiscal year. The company's total income also fell sharply from Rs 1.08 billion in the previous fiscal year to Rs 56.45 million in the current fiscal year.

The decline in profits is primarily attributed to two factors. First, incessant rains in late September triggered floods and landslides, leading to a surge in insurance claims. As a result, insurance companies had to make significant payouts, affecting their profitability. Second, falling interest rates over the past 18 months have also impacted the sector. Since insurance companies invest a large portion of their funds in fixed deposits, lower interest rates have reduced their investment income, further affecting overall profits.

The state-owned Rastriya Beema Company posted the highest profit among non-life insurers, earning Rs 346.6 million in the second quarter. However, this figure represents an 18.86% decrease from its Rs 427.2 million profit in the same period last fiscal year. Shikhar Insurance ranked second in terms of profit, earning Rs 257.3 million. Meanwhile, Sagarmatha Lumbini Insurance recorded the lowest profit, with earnings of Rs 65.8 million in the second quarter.