Nepal’s Non-Life Insurance Sector Faces Significant Decline In Profits, with Some Companies Showing Growth
Kathmandu – The financial performance of Non-life Insurance Companies has seen a significant decline in the first quarter of the current fiscal year, with an overall 86% drop in profits across the non-life insurance sector in Nepal.
According to the latest data, 14 non-life insurance companies operating in Nepal collectively earned a total profit of just Rs 166.5 million over the three-month period. In stark contrast, the same companies posted a total profit of Rs 191.6 million in the same period last year. The sharp decline in profits highlights the challenging market conditions faced by the industry.
Notably, four prominent non-life insurance companies reported negative profits during this period. Among these, United Ajod Insurance, Sagarmatha Lumbini Insurance, National Insurance, and Oriental Insurance all experienced losses, contributing to the overall downturn in the sector.
However, not all companies saw negative results. Rastriya Beema Company, which is government-owned, emerged as the highest earner with a net profit of Rs 156.5 million during the period, surpassing all other non-life insurance companies. Shikhar Insurance followed closely in second place, with a net profit of Rs 115.2 million, while Neco Insurance claimed the third spot with a profit of Rs 70.4 million.
Other companies also performed relatively well. Himalayan Everest Insurance posted a profit of Rs 66.1 million, while Siddhartha Premier Insurance reported a profit of Rs 64 million. Prabhu Insurance earned Rs 56 million, Sanima GIC Insurance earned Rs 50.8 million, NLG Insurance made Rs 48.9 million, and Nepal Insurance earned Rs 10.4 million in profits.
Looking at the growth rate, Sanima GIC Insurance achieved the highest increase in profit, with a 50.6% growth compared to the previous year. Himalayan Everest Insurance followed with a 23.72% increase, while IGI Prudential Insurance ranked third with a 19.5% profit growth.
Other companies also showed positive growth, including National Insurance, which saw a 13.74% increase in profits, and Prabhu Insurance, which experienced a 10% growth.
The performance of the non-life insurance sector in Nepal has been mixed, with some companies managing to achieve growth despite the overall decline.