Life Insurance Companies Post Nearly 12% Rise in Net Profit in Nine Months

Source: Financial Statements of Respective Companies

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.

Rastriya Jeewan Beema 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)

Rastriya Jeewan Beema 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.

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